Payroll Processing and Analysis

Payroll Processing and Analysis Overview

Using Oracle HRMS you can run a payroll, perform post processing on a successful payroll, and also make changes and corrections for a payroll that has not completed successfully.

Payroll Processing and Analysis in Oracle HRMS

You can run your payroll as:

You can perform all the necessary post processing to generate payment for your employees once you are satisfied that your payroll run results are correct:

You can analyze your payroll run results to get early notification of possible discrepancies:

You can use these processes for correcting a payroll run:

You can run these processes to make accurate provision for current payments backdated from a previous pay period, or current payments received in advance for a future pay period:

Key Concepts

To enable you to process and analyze payrolls, you need to understand these concepts:

Reporting on Payroll Processing and Analysis

See Reports and Processes in Oracle HRMS, Oracle HRMS Window Navigation and Reports Guide

Payroll Processing and Analysis

The main purpose of the payroll run is to calculate employee pay correctly at regular intervals. In addition you can perform other payroll processes to ensure accuracy and provide flexibility for your organization. For example, you can roll back a payroll run when you want to carry out a test run without keeping any record of it having taken place. You can also run a RetroPay process when you want to make retrospective adjustments to allow for backdated pay awards.

Does Oracle Payroll enable you to run part payrolls?

Yes, Oracle Payroll enables you to run part payrolls. This is useful in each of the following circumstances where you do not want to process a payroll for the entire organization.

Calculating Pay for an Individual Employee or Group of Employees

If an employee leaves the company before the end of a payroll period, you will need to calculate the individual pay entitlement.

You may also want to calculate individual pay to check the details for an employee before starting a payroll run for all employees.

Specifying What Details You Can Include in a Payroll Run

You may want to specify that only particular types of earnings or particular categories of employee should be included in a payroll run.

Can you verify that a payroll run has completed successfully?

On completion of a payroll run you will need to verify that the run completed successfully. You can display run messages and view latest balances and assignment level results. You may also need to have relevant information grouped by topic in report format so that you can review the outcome of processing. Payroll runs can be monitored through the Payroll Progress Monitor, enabling you to view the name of the run and the percentage/time of completion.

Can you make adjustments after a payroll run has completed?

Oracle Payroll enables you to make each of the following types of adjustment when a payroll run has completed.

When you have made these corrections and modifications you can then run the payroll again. However, you do not need to rerun the entire payroll. You need only to perform a retry, and Oracle Payroll will reprocess only those items that were incorrect in the initial run.

Can you produce payment and costing information from a completed payroll run?

Oracle Payroll enables you to use the results of a payroll run to allocate payments to your employees, and to provide costing information.

Ensuring that Employees are Paid by the Correct Payment Method

When a payroll run has completed you need to pay each employee according to the payment methods that you have specified. You may also need to override the predefined payment methods where employees are receiving special payments such as bonuses, which may not be paid by the usual methods of payment. You also have the ability to pay an employee, who has multiple assignments within your organization, a regular single payment.

Ensuring that Costing Information Can be Provided

On completion of a payroll run you may need to distribute the associated costs across particular cost centers. For information on this, see: Cost Analysis Overview, Oracle HRMS Enterprise and Workforce Management Guide

Can Oracle Payroll run payroll processes throughout a payroll period?

Yes, the continuous calculation process enables you to process static employee data throughout the payroll period, leaving you extra time for validation and correction at the end of the payroll period.

What if you want to know how much gross pay is required to produce a given net amount?

Where employers have agreed to pay tax on a known fixed net payment, Oracle Payroll can calculate the gross amount that employees must receive in order to meet all deductions and still receive the correct net amount. This is referred to as Net-to-Gross processing, and the calculations that derive the correct gross amounts are referred to as Grossups, provided that the feature is enabled in your country.

Note: The entries made in the "Grossup Processing" tab on the earnings form only specify what deductions are to be included when calculating the gross pay. The system looks at the taxability rules to determine what deductions should be taken from an earning and does not take into consideration what is entered on the grossup processing tab. For example, if the gross up processing tab shows that Federal tax is to be the only tax included in the grossup calculation but the element is subject to CPP, EI and Federal tax as per the taxability rules, all three taxes will be deducted.

Can you process external and manual payments

Yes, Oracle Payroll enables you to make external and manual payments.

The Payroll Run

Process Part of a Payroll

Oracle Payroll enables you to run a payroll and conduct post-processing on a payroll that has completed successfully. You can also enter subsequent changes and corrections for a payroll that has not completed successfully.

Oracle Payroll makes use of the following concepts when implementing payroll procedures:

Assignment Sets

Occasions when you need to use assignment sets for the payroll run include:

To fulfil these requirements, you can select from a range of assignments:

Consolidation Sets

A consolidation set is a grouping of payrolls that simplify post-run processing and reporting. It enables you to produce a single set of reports, costing results, and other results for all payrolls in a consolidation set. When you run a payroll, make sure that you have named the consolidation set to which the payroll belongs.

Element and Distribution Sets

With a normal payroll run, you would want to include all elements, but for a long service award bonus you would want to include only the bonus element and the statutory elements. You first calculate gross pay for ascertaining the gross amount to transfer into the payroll account. Then you complete the gross to net calculation.

You can select element sets as follows:

Canada only: When creating a Run set, you need to explicitly add the Canadian Tax recurring element to your element set.

US only: When creating a Run set, you need to explicitly add the VERTEX recurring element to your element set.

The predefined elements for Oracle Payroll are processed for every payroll run in which they have been included. The deductions are recalculated using the period totals, the amount already paid in previous runs is deducted, leaving the remainder as the deduction for the new payroll run.

QuickPay

QuickPay enables you to carry out payroll processing for individual employees. You can use QuickPay to pay employees who are leaving and who require payment immediately. If an employee asks what their net pay will be this month, you can run QuickPay to find the answer, then roll it back to remove all results from the database.

QuickPay: Two Options for PrePayments:

Once the QuickPay run has a status of Complete, you have a choice of two options for post-run processing:

Troubleshooting QuickPay: Concurrent Manager

When you start the QuickPay process, the screen freezes, and you cannot delete or update the QuickPay definition until the process completes.

You may receive one of the following error messages:

Continuous Calculation

Continuous Calculation enables you to distribute your payroll processing throughout a payroll period. You can run processes such as the payroll run, prepayments steps, and costing, which deal with predominantly static employee data, at the start of the payroll period, leaving more time for validation and correction of changed data.

Continuous Calculation works by using triggers. You define triggers and events which inform the system when data has changed. For example, if an employee receives a bonus, the corresponding event is triggered. When you subsequently run the Continuous Calculation process, the system identifies these triggers and marks the corresponding payroll processes (such as the payroll run) to be repeated. The affected processes are repeated in a batch process which can be run as often as required. You define the frequency of the batch process when you run the Continuous Calculation process.

Setup Information for the Electronic UIF File

The Electronic UIF (Unemployment Insurance Fund) File must be submitted to the Department of Labour on a monthly basis. You must perform the following setup steps before you run the Electronic UIF File Preprocess and the Electronic UIF File process.

To set up your system to process UIF and produce the Electronic UIF file

  1. Run the Termination Category Setup Process. You run this process to copy values in the LEAV_REAS lookup to the ZA_TERMINATION_CATEGORIES user table.

    See: Running the Termination Category Setup Process

  2. Map each of your enterprise's leave reasons to one of the UIF 'termination' employment statuses.

    See: Setting Up User Tables

  3. Ensure you link the ZA_UIF_Employee_Contribution element to all payrolls.

    See: Defining Element Links, Oracle HRMS Compensation and Benefits Management Guide

  4. If you want to exclude an assignment from the calculation of UIF you must select a reason for non-contribution on the ZA UIF Information extra information type.

    Note: Assignments with an indepenedent contractor status set to Yes on the ZA Further Assignment Information extra information type will also be excluded from the calculation of UIF.

    See Assignment Extra Information Types

  5. Ensure all assignments have a legal entity selected on the Assignment Further Information flexfield.

    Note: Assignments with no legal entity will be excluded from the Electronic UIF file.

    See Assignment Extra Information Types

  6. Enter UIF file creator information for your business group.

    See Business Group: Entering ZA UIF File Creator Information

  7. Run the UIF Processes.

    See: Running the Electronic UIF File Preprocess

    See: Running the Electronic UIF File Process

Running the Electronic UIF File Preprocess

You run the Electronic UIF File Preprocess to archive employee's UIF information. The Electronic UIF File process reads this information and includes it in the Electronic UIF File.

You run the Electronic UIF File Preprocess from the Submit Request window.

To run the Electronic UIF File Preprocess

  1. Query the Electronic UIF File Preprocess in the Name field.

  2. Select the name of the payroll in the Parameters window. The consolidation set for that payroll is automatically displayed.

    The calender month defaults to the last day of the calender month the effective date falls in. However, you can overwrite this date if necessary.

    You can enter either an Assignment Set or an Employee Name or both to limit the assignments you want to process. The assignment set and employee name you choose here depends on the payroll you select.

  3. Choose the Submit button.

  4. Run the Electronic UIF File process.

    See: Running the Electronic UIF File Process

Running the Electronic UIF File Process

You must submit the Electronic UIF File on a monthly basis to the Department of Labour.

You run the Electronic UIF File process from the Submit Request window.

To run the Electronic UIF File process

  1. Query the Electronic UIF File process in the Name field.

  2. Select the calender month in the Parameters window. The calender month defaults to the last day of the calender month the effective date falls in. You can overwrite this date if necessary.

  3. Select the UIF File Preprocess.

  4. Select whether the process is a test run or a live run.

  5. Choose the Submit button.

    The Electronic UIF File that is created is in the $APPLCSF/out directory. The output file name is in the format o<request_ID>.mf. The request ID is created by Oracle Payroll.

Running the UIF Report

The UIF (Unemployment Insurance Fund) report shows the UIF income basis and the contributions made by the employee and the employer for the month.

You run the report from the Submit Requests window.

To run the UIF report

  1. Select UIF Report in the Name field.

  2. Select the name of the Payroll in the Parameters window.

  3. Select the pay period.

  4. Choose the Submit button.

Running the COIDA Report

A new annual W.As.8 COIDA return became effective from 1 March 2010. The new format requires a monthly breakdown of actual earnings and number of employees for the current reporting year. The updated report contains a row with average number of employees/directors and average earnings along with Grand Totals at the end of the report. This report provides the monthly breakdown of employees' income and other information enabling you to report per employee for verification purposes.

You run the COIDA report using the following concurrent programs:

To run the COIDA Preprocess

  1. In the Name field, select COIDA Preprocess.

  2. In the Parameters window, select the Payroll Name.

  3. Select the Payroll Period.

  4. Click Submit.

To run the COIDA Report

  1. In the Name field, select COIDA Report.

  2. In the Parameters window, input Tax Year.

  3. Select the Tax Year.

  4. Select the COIDA Preprocess.

  5. Click Submit.

Running the COIDA Report (Pre 2011)

You can run the COIDA (Compensation for Occupational Injuries & Diseases Act) report as often as required during the tax year before submitting it to the COIDA governing body at the end of the tax year. If a company is closing down, you can submit the report at the time of closure.

The management in your enterprise can use this report for estimates of COIDA headcount for budgeting purposes.

You run this report from the Submit Requests window.

To run the COIDA report (pre 2011)

  1. Select C.O.I.D.A Report in the Name field.

  2. Select the start and end date, in the Parameters window, to determine the period included in the report.

  3. Select the name of the payroll.

  4. Indicate whether to include employee-level detail in the report.

    If your payroll totals do not appear to be correct, select Yes to list all the employees and their COIDAable income for the payroll. This will help you identify any inaccuracies.

    Select No to show the COIDA contributions per payroll.

  5. Choose the Submit button.

Running the Skills Development Levy Report

You run this report at the end of the month after running the payroll. The report includes the Skills Development Levy information required for the SARS submission SDL201. You can run this report for the SETA or for each organization in a SETA.

The report includes:

Note: The Extra Assignment Information flexfield must contain information in at least one field for the assignment record to be created and reflected in the Skills Levy Report. The skills development levy calculation does not consider excess arrear pension or excess arrear retirement annuity fund contributions from previous tax years.

You run the Skills Development Levy report in the Submit Requests window.

To run the Skills Development Levy report

  1. Select Skills Development Levy Report in the Name field.

  2. Select the SETA name in the Parameters window.

  3. Select the organization name, if required.

  4. Change the process date if required. The default date is the current effective date. The report will, however, include the data as of the last day of the specified month.

  5. Specify the level of detail to be included in this report:

    • Full print detail includes figures at an employee level

    • Summary report includes figures for the SETA or the organization in the SETA

  6. Choose the Submit button.

Running the Pay Advice Report

This report generates pay advices for all employees for a specified payroll and period. This is a sample report that you can customize for your payroll. You must run the Pre-payments process before submitting the Pay Advice report

Run the report from the Submit Requests window.

To run the Pay Advice report

  1. Select Pay Advice (South Africa) in the Name field.

  2. Select the payroll for which you want to generate pay advices in the Parameters window.

  3. Select the prepayments process.

  4. Enter an override date to print a different date on the payment advice. If you leave this field blank, the payment advice will show the pay date for the period in which the prepayment was run.

  5. Leave the Assignment Number field blank to generate pay advices for all employee assignments. Otherwise, enter the employee assignment number to generate a single pay advice for an employee assignment.

  6. Change the sort order if required. The default order is: Location, Organization, Employment Category, Employee Number, Assignment Number and Employee Name.

  7. Choose the Submit button.

Running the Pay Advice Generation - Self Service (South Africa) Process

To run the Pay Advice Generation - Self Service (South Africa) process successfully, ensure you have previously set up your ZA Payslip Balances and ZA Payslip Elements information.

Note: The process only archives data for employees in the payroll run who have successfully completed the prepayments process.

You run the Pay Advice Generation - Self Service (South Africa) from the Submit Request window.

To run the Pay Advice Generation - Self Service (South Africa) process

  1. Select Pay Advice Generation - Self Service (South Africa) in the Name field.

  2. Select the consolidation set and optionally the payroll details in the Parameters window.

  3. Enter the effective start and end dates for which you want to generate the payslip.

  4. Choose the Submit button.

Post Processing for a Payroll

Post-Processing for a Payroll

PrePayments Process

Within Oracle Payroll the PrePayments process enables you to select a payment method to pay your employees. You can distribute employee pay over more than one method using either a percentage or monetary split.

You can override the PrePayments process. For example, suppose you have run the normal payroll run and made payments via one payment method. You then have to run supplementary payments for some employees and pay them by a different payment method. The PrePayments process, having distributed the regular payments over the payment methods entered, allocates the supplementary payments to the override method.

Payroll Submission Archive and Payroll Submission Report

Use these reports to submit payroll information to Revenue. You can generate these reports based on prepayments. This is a two-step process and includes archiving and reporting. Archiving enables you to archive the payroll details and the payroll submission report process enables you to generate the report based on the archived details.

Cheque/Check Writer Process

Run the Cheque/Check Writer process to determine the generation of cheques/checks for a specified payroll and consolidation set over a specified time period.

You can generate contiguous serial numbers for cheque/check printing, and you can use this feature to account for cheque/check stationery used during the cheque/check printing process. If you do this, you also need to take into account the cheques/checks you use to carry out the alignment of your printer.

A sample cheque/check report is supplied with the Cheque/Check Writer process. You can customize this report, or add your own cheque/check style to meet your enterprise requirements.

Oracle Payroll provides automatic cheque/check numbering for the Check Writer process. You can keep track of cheque/check numbers when you process multiple cheques/checks per day.

Note: Your System Administrator can enable the HR: Default Check/Cheque Number Method profile which enables you to use the automatic check/cheque numbering process.

See User Profiles, Oracle HRMS Configuring, Reporting, and System Administration Guide

Void Cheque/Check Payments Process

Run the Void Cheque/Check Payments process when you want to void cheques/checks you have issued using Oracle Cheque/Check Writer. You may want to do this if there is a printing error or if the cheques/checks you print are afterwards lost. The process cancels the cheques/checks issued, records details of the cancellation, and enables you to give a reason for cancelling.

Check Writer - Override Payment Date Process

When you reissue a check after voiding it using the Void Check Payments process, the Check Writer process prints the check with the original Payment Date by default. Using the Override Check Date feature, you can replace the original check date with a check date of your choice. For reporting purposes, the Payment Register Report captures the replacement date from the reprinted check.

External/Manual Payments Process

Use the External/Manual Payments window to record cash or cheque/check payments to employees from external sources or petty cash. The window enables you to record details of each payment.

Processing Checks/Cheques

Running the Cheque Writer Process

The Cheque Writer process generates cheques for a specified payroll and consolidation set over a specified time period.

The process enables you to generate contiguous serial numbers for cheque printing, and you can use this feature to account for cheque stationery used during the cheque printing process. If you do this, you also need to take into account the cheques you use to carry out the alignment of your printer.

A sample cheque report is supplied with the Cheque Writer (South Africa) process. You can customize this report, or add your own cheque style to meet your enterprise requirements.

See: Adding Your Own Cheque Report

You run this process from the Submit Requests window.

To run the Cheque Writer (South Africa) process

  1. Select Cheque Writer (South Africa) in the Name field.

  2. Select the name of the payroll or consolidation set, in the Parameters window, to run the process. When you select a payroll, its default consolidation set displays.

  3. Enter the start and end dates for the process. The end date displays the date tracked date. If the end date is left blank, all unpaid cheque payments will be processed in this run.

  4. Select your cheque payment method.

  5. Enter the sort sequence for the cheques. This defaults to Organization, then Person.

  6. Select the Default cheque style for the sample cheque report PYZACHRP. This generates and prints the cheque numbers on the cheque. Alternatively, select Pre-numbered for the sample cheque report PYZACHR2. This generates cheque numbers but does not print the number on the cheque.

  7. Enter the first cheque number of your cheque sequence in the Start Cheque field. If required, you can enter the last cheque number in the End Cheque field.

  8. Enter an override date to print a different date on your cheques. If you leave this field blank, the cheques will show the period-end date of the period for which the report was run.

  9. Choose the Submit button.

Adding your Own Cheque Report

You can add your own cheque report if the default cheque layout does not meet your requirements:

To add your own cheque report

  1. Define a custom report.

    See: Defining Custom Reports, Oracle HRMS Configuring, Reporting, and System Administration Guide

  2. Copy the custom report to the $PAY_TOP/reports directory.

  3. Add a lookup code for the report to the ZA_CT_CHEQUE_REPORT lookup type.

    See: Adding Lookup Types and Values, Oracle HRMS Configuring, Reporting, and System Administration Guide.

RetroPay Processing

Overview of RetroPay Processing

Purpose of the RetroPay Process

Run the RetroPay process to ensure that your payroll run for the current period reflects any backdated payments or deductions. Backdated adjustments can occur when:

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For example, at the start of the current pay period, this employee has a pay award backdated to pay period 1. The employee has not yet received any payments for this award. In the current pay period the employee is entitled to payments that represent the backdated amounts for:

You run your RetroPay process to ensure that the employee receives correct payment when you next run the payroll.

Period Earned is Distinct from Period Paid

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When backdated payments occur, the accuracy of your subsequent payroll processing depends on distinguishing between:

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For example, the taxation implications are different for:

The RetroPay Process Does Not Overwrite Your Historical Payment Records

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You never overwrite historical payroll data when you run RetroPay. Although you recalculate all periods that have retroactive changes whenever you run a RetroPay, you never modify the stored results for these periods. Instead, you create one or more RetroPay entries to receive the process results.

Think of the RetroPay process as a calculator holding results in memory so that it can process a final set of results. The RetroPay process uses your historical results to calculate the changes for the current period. The results for your current period change, but your historical records remain unchanged.

Process RetroPay with Overlapping Periods

The RetroPay process recalculates payroll runs, balance adjustments and reversals from a particular date onwards, the start date of the recalculations. When you have retroactive changes overlapping another retroactive change, the application resets the start date to the earliest start date of the RetroPay processes and recalculates.

For example, you perform a RetroPay (RetroPay 1)for an assignment in period 3, with Payroll Runs being recalculated from a start date of period 1. In period 5, you perform another RetroPay (RetroPay 2) for the assignment with a start date of Period 3. The second RetroPay detects an overlap of RetroPays and sets the start date to the earliest start date.

In this case, the application sets the start date as Period 1. An overlapping override occurs to ensure that the balances are correct for the RetroPay process.

The processing of overlapping RetroPay results in an overall increase in time to process the RetroPay. If there are multiple overlaps, the increase in time is excessive.

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Setting Up Retro-Notification and RetroPay

Follow this process to set up the Retro-Notifications report, and the correct RetroPay process for your payroll.

    Set Up the RetroPay Component

  1. The RetroPay component determines the default style of RetroPay processing for your localization. For example, you can specify that your default style is Tax When Paid, rather than Tax When Earned .

    Note: The Tax When Paid Retro Style is available for China localization users only.

    You can use either of the following methods to set up your RetroPay component:

    Method How To Advantages
    Set Up the Organization DFF From the Additional Organizational Information window:

    1. Select Retro Component Usages.

    2. Select the Tax Area.

    3. Enter a Retro Style, for example, Tax When Paid.

    4. Enter an Effective Start Date.

    5. Enter an Effective Date.

    6. Choose OK to confirm your choices.

    		 Processing the retrospective payments for all employees in the same style is a faster alternative than setting up details at the element level for each assignment.
    This method does not prevent you from making changes for individual assignments when you view RetroPay status.
    Set Up Retro Components and Spans at Element Level From the Element window:

    1. Query the element.

    2. Choose the Recalculation tab.

      South African users: Select the predefined ZA Statutory Updates event group from the list of values in the Recalculation Events field. Alternatively, you can create and attach an event group of your choice.

    3. Choose the Retro Components button.

      Important: Do not enable the Retro Component of the elements that are themselves being used to process retropay for another element.

    4. Select a Recalculation Reason.

    5. Select a Reprocess Type.

    6. Select an Element Span to indicate the start date and end date on which you want to report.

    		 You can modify entries at element level to make exceptions for particular assignments.

    Note: Your localization may advocate one of these as the preferred method.

    2. Set Up the Retro-Notifications Report

  2. Determine whether a retrospective change in Oracle Payroll will appear in the Retro-Notifications report. Set up an event group to contain all the retrospective change events that you want to record.

    See: Setting Up the Retro-Notifications Report

    3. Set Up Your RetroPay Process

  3. Although Enhanced RetroPay is the recommended RetroPay process for most localizations, your System Administrator can also set up these earlier versions of RetroPay.

    See: Setting Up RetroPay by Element

    See: Setting Up RetroPay by Run and RetroPay (by Aggregate)

Setting Up the Retro-Notifications Report

You use the Retro-Notifications report to identify any changes that have a retrospective effect for payrolls that you have already run. You can define the relevant types of change by setting up an event group to specify the changes. Follow these steps to set up the Retro-Notifications report:

To enable dynamic triggers

  1. Navigate to the Dynamic Triggers window.

  2. Enable any dynamic triggers that the application generates. It is important to enable these triggers to ensure your payroll processing updates each database table correctly. The recommended minimum list of triggers to enable for the Retro-Notifications report is as follows:

    Table Name Trigger Type
    PAY_ELEMENT_ENTRY_VALUES_F Update
    PAY_ELEMENT_ENTRIES_F Update
    PAY_ELEMENT_ENTRIES_F Insert
    PAY_ELEMENT_ENTRIES_F Delete

To define an event group

  1. Navigate to the Table Event Group window.

  2. Enter a name for your Event Group, for example, Retro-Notification Events.

  3. Select Retro as your event groups type.

  4. Save your entries.

  5. Select the events that will produce notification if retrospective changes occur. Specify the following information to identify the type of update and the database table to which it applies:

    • Update Type

    • Base Table Name

    • Column Name

    For example:

    Update Type Table Column Name
    DateTrack Correction PAY_ELEMENT_ENTRY_VALUES_F SCREEN_ENTRY_VALUE
    DateTrack Update PAY_ELEMENT_ENTRIES_F EFFECTIVE_START_DATE
    DateTrack Update PAY_ELEMENT_ENTRIES_F EFFECTIVE_END_DATE
    DateTrack End Date PAY_ELEMENT_ENTRIES_F  
    DateTrack Insert PAY_ELEMENT_ENTRIES_F  
    DateTrack Delete PAY_ELEMENT_ENTRIES_F  

To enable the Incident Register

  1. Navigate to the Functional Area Maintenance window.

  2. Query the Incident Register and ensure that you have triggers defined.

  3. Decide whether to capture the triggers by legislation, business group, or payroll. Navigate to each tab to make your selection.

Setting Up RetroPay by Element

RetroPay by Element is the recommended RetroPay process for most localizations, and is required if you use Enhanced RetroPay.

To set up RetroPay by Element:

  1. Create the retroactive element. The recommended settings are:

    • Non-recurring

    • Multiple entries allowed

    View this element in the RetroPay field of the Element Description window. By default, retroactive elements use the same name as the element that they represent, but you can change this name for user-defined elements.

  2. Enter retroactive changes using DateTrack.

  3. Create assignment and element sets including the assignments and elements for retroactive processing. The element set type is Run Set.

    Note: North American HRMS: For earnings elements defined as Reduce Regular, include the Special Features element in the element set.

    Use one of two methods to create your assignment set:

    • Use the Assignment Set window. This method is useful when you have a few employees to include in a RetroPay run and you are confident that you can identify all the employees that you want to include.

    See: Creating an Assignment Set, Oracle HRMS Payroll Processing Management Guide

    • Run the Retro-Notifications report to automatically generate an assignment set of all employees with retrospective changes.. This method is useful if you want to be certain that your assignment set includes all potential changes. You can edit this assignment set to add and remove assignments.

    See: Running the Retro-Notifications Report

Setting Up RetroPay by Run and RetroPay (by Aggregate)

You should consider setting up Enhanced RetroPay in preference to RetroPay by Run or RetroPay (by Aggregate). However, we include setup information on these older types of RetroPay as reference.

To set up the RetroPay process for RetroPay (by Aggregate) and RetroPay by Run

Each step applies to both RetroPay (by Aggregate) and RetroPay by Run unless explicitly indicated otherwise.

  1. Create an assignment set to define the set of employee assignments that you want to change. There are two methods of doing this:

    • Use the Assignment Set window. This method is useful when you have a few employees to include in a RetroPay run and you are confident that you can identify all the employees that you want to include.

    See: Assignment Sets, Oracle HRMS Payroll Processing Management Guide

    • Run the Retro-Notifications report to automatically generate an assignment set of all employees with retrospective changes. This method is useful if you want to be certain that your assignment set includes all potential changes. You can edit this assignment set to add and remove assignments.

    See: Running the Retro-Notifications Report

  2. In the Element Entries window, make the necessary date effective updates to element entry values for each employee assignment in the set.

    See: Making Manual Element Entries, Oracle HRMS Compensation and Benefits Management Guide

  3. Make other changes if necessary to salary information or to other database values relevant to the backdated changes.

  4. In the Element window, define the RetroPay elements you require to receive entries of the retroactive adjustments. Your definition must include the following:

    • An appropriate element classification such as Earnings or Voluntary Deduction (not Information)

    • The processing type Nonrecurring

    • The rule Multiple Entries Allowed

    • Input values with these names:

      • Pay value

      • Start date (not necessary for RetroPay by Run)

      • End date (not necessary for RetroPay by Run)

    See: Defining an Element (Payroll Users), Oracle HRMS Compensation and Benefits Management Guide

  5. In the Element Link window, link the element to define your eligibility criteria.

    See: Defining Element Links, Oracle HRMS Compensation and Benefits Management Guide

To create a RetroPay set

  1. In the RetroPay Set window, enter a name and a description for the RetroPay set you are creating. Save this information before moving to the next block.

  2. Select the balance in which the RetroPay process will create new values, such as Gross Pay to Date. You can select more than one balance. However, for RetroPay by Run the balance dimension must always be ASG_RETRO_RUN.

    For RetroPay (by Aggregate), if you plan to run the process over several past payroll periods, check that you are not going through an end of year or similar period where the application resets balance totals to zero. If necessary, adjust the balance dimension span to ITD.

  3. Select the RetroPay element you have defined to receive the values of the updated balance.

  4. Select an input value for the element. Normally this value is Pay Value, but you can also calculate RetroPay hours by including an Hours input value.

Setting Up Enhanced RetroPay with Component Usages and Element Time Spans

Standard RetroPay is the default RetroPay processing method for the Netherlands. It enables you to deal with any earnings changes made in the previous or current year, and any changes to tax and social insurance, impacting payroll calculations made in the current year. To carry out RetroPay processing, for every earnings element defined, you must set up two RetroPay elements, both with the skip rule Once Each Period assigned. These elements require the primary classifications Earnings, for changes in the previous year, and Retro Earnings, for changes in the current year. The same rule applies to imputed elements with the classifications Imputed Earnings and Retro Imputed Earnings. You set up RetroPay component usages to define how RetroPay will process the component. For each of these components you define an element time span to specify the start and end dates of the retro processing, and which RetroPay element applies for each time span.

Note: Each RetroPay element you create must have the skip rule, Once Each Period, assigned to it. Users in the Netherlands select a particular RetroPay method by running the concurrent program Enable Dutch RetroPay Method and selecting, either standard or replacement. The default entry is standard.

Only add assignments requiring RetroPay processing to the RetroPay set. The RetroPay process posts retro entries for each of the assignments in the RetroPay set. Note that these retro entries always include any changes to tax and SI information, even if there are no retrospective earnings entries.

Each pre-tax or pre_si and pre-tax deductions element processed by RetroPay must have a corresponding RetroPay element with a primary classification of Retro Pre-Tax Deduction or Retro Pre-SI and Pre-Tax Deduction. You must also define a RetroPay Component Usage and an Element Span Usage for the original element for each RetroPay method used, whether Standard or Replacement. All earnings elements require a corresponding RetroPay element and link.

For further information on the methods of RetroPay available for the Netherlands, see: RetroPay for the Netherlands, Oracle HRMS Payroll Processing Management Guide.

For further information on how to enable your RetroPay method of choice, see:Enabling the Method of RetroPay, Oracle HRMS Payroll Processing Management Guide.

For further information on how to override the Replacement RetroPay method for the Netherlands, see: Business Groups: Entering Dutch Business Group Information, Oracle HRMS Enterprise and Workforce Management Guide.

Important: If you do not require the Replacement method of RetroPay, you do not have to enable the Standard method, as it is the default method.

Defining Retropay Earnings Elements

You enter element information in the Element window.

An example of defining an earnings element for Netherlands payroll appears in the notes below.

  1. Define your salary element with the primary classification of Earnings.

  2. Choose the Balance Feeds Control button. In the Balance Feed Control region select the appropriate element classifications from the list of values.

    Note: Netherlands users, for example, select the classifications SI Income Subject to Standard Tax: Earnings and Subject to Standard Tax: Earnings.

  3. Choose the Balance Feeds button to view the resulting balances feeding the element.

    Note: You must now set up two retropay elements with the skip rule Once Each Period assigned.

  4. Define the retropay element for the previous salary year, with the primary classification Earnings.

    Note: Netherlands users, in the Processing region, click on the Skip Rule and select NL_ONCE_EACH_PERIOD from the menu.

  5. Choose the Balance Feeds Control button. In the Balance Feed Control region select the appropriate element classifications from the list of values. Retropay elements for the previous year that are subject to tax must always be subclassified as subject to special tax, regardless of the tax category of the original earnings element. If an original earnings element is subject to standard tax, then the retropay element must be subject to special tax. This includes SI Income and SI Gross Salary elements that are subject to tax.

    Note: Netherlands users, for example, select the classifications SI Income Subject to Special Tax: Earnings and Subject to Special Tax: Earnings.

  6. Choose the Balance Feeds button to view the resulting balances feeding the element.

  7. Save your work.

  8. Define the retropay element for the current salary year, with the primary classification of Retro Earnings.

    Note: Netherlands users, in the Processing region, click on the Skip Rule and select NL_ONCE_EACH_PERIOD from the menu.

  9. Choose the Balance Feeds Control button. In the Balance Feed Control region select the appropriate element classifications from the list of values. Retropay elements for the current year, subject to tax, must always be subclassified the same as the tax category of the original earnings element. If an original earnings element is subject to standard tax, then the retropay element must be subject to standard tax also. This includes SI Income and SI Gross Salary elements that are subject to tax.

    Note: Netherlands users, for example, select the classifications SI Income Subject to Standard Tax: Earnings and Subject to Standard Tax: Earnings.

  10. Choose the Balance Feeds button to view the resulting balances feeding the element.

  11. Save your work.

  12. You can now set up your retropay components and element span usages.

Setting Up Retropay Component Usages

Retropay component usages assign the components to the salary elements you created, ensuring all the elements recalculate with the latest values.

  1. Query your defined salary element, in the Element window.

  2. Select the Recalculation tab, and check the Retro Components button.

  3. In the Retropay Components region of the Retropay Element window, choose the component field, and an appropriate component from the list of values.

    Note: Netherlands users select the Retro Component Standard, or Replacement as required.

  4. Select the Reprocess Type. If you select Static, then Retropay will not process any changes to the element when running the relevant component. Opting for the Reprocess Type ensures the element changes process.

    Note: Netherlands users select the Reprocess Type, Reprocess. Dutch Retropay processes the period of change, and not the nature of change, such as a correction or backdated change. As a result, the whole retro period reprocesses.

  5. Save your work.

  6. You can now enter the element time spans.

    Example of a standard retropay component set up for an earnings element
    Element Component Name Reprocess Type Comments
    User Defined Element Standard Reprocess Retro Earnings
    Example of a replacement retropay component set up for an earnings element
    Element Component Name Reprocess Type Replace Run Use Override Dates
    User Defined Element Replacement Reprocess Yes Yes

Setting Up Element Span Usages for Earnings Elements

The element time span usages defines the start and end dates for retropay processing. Most elements have the standard time span of Start of Current Year to End of Time already assigned, to cover any changes made in the current year. The exceptions for the Netherlands are standard taxable income and standard tax deduction, which include the timescales Start of Current Year to End of Previous Quarter, and Start of Current Quarter to End of Time, to cover student taxation. For each earnings element, or imputed earnings element with a defined retropay component usage, you must define two element span usages. These element span usages cover the earnings for both the current and the previous year, defining not only how far back processing should cover, but also up to where a particular retropay element carries forward the retro changes. You must define your retropay elements and components before defining the element time spans.

Set up the Element Span Usages in the Retropay Elements window.

  1. Query your defined salary element in the Element window.

  2. Select the Recalculation tab, and check the Retro Components button.

  3. In the Retropay Elements region, select the appropriate time spans from the From and To fields, to define the time period the retropay element is covering.

    Note: In the Time Spans fields, for each earnings element or imputed earnings element with a standard retropay component usage defined, you must define the element span usages for both the current and previous years. For example, for the retropay element, Retro Salary Previous Year, you define the time span from Start of Time to End of Previous Year. For each earnings, or imputed earnings element with a replacement retropay component defined, you must define the element span usage for the current year. You can set up a second time span to cover the previous year, if required.

  4. Select the retropay elements you created from the Retropay Element field.

  5. Save your work.

    Example of earnings element span definitions for both standard and replacement components
    Element Component Span From Span To Retropay Element
    User Defined Element Standard Start of Time End of Previous Year Retro Earnings Previous Year
    User Defined Element Standard Start of Current Year End of Time Retro Earnings Current Year
    User Defined Element Replacement Start of Current Year End of Time Retro Earnings Current Year
    User Defined Element Replacement Start of Time End of Previous Year Retro Earnings Previous Year

Setting Up Overlapping RetroPay Using Balance Adjustments

If you have overlapping periods for making retro payments, ensure that the Retro Overlap feature is enabled. This process recalculates from the latest reprocess date and uses Balance Adjustments. Follow these steps to set up the Retro Overlap feature :

To set up Retro Overlap using Balance Adjustments

  1. Run the corresponding concurrent program to enable the retro overlap feature for your localization, for e.g. Enable Retro Overlap for all UK Business Group.

  2. Set up all the Retro Element Types and associate them with their corresponding elements.

  3. Define a retro element for every element that feeds a balance. The Balance Adjustment process uses the retro entries created in future periods to do adjustments.

  4. Enable the 'Do Not Process' check box for any new retro elements used for retro balance adjustments.

Understanding the Sequence of Your RetroPay Activities

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Follow this sequence to:

  1. Identify outstanding backdated adjustments

  2. Monitor and control the processing of backdated adjustments

  3. Include backdated adjustments in your next payroll run.

You can only run the Retro-Notifications report and view RetroPay status if you are using RetroPay by Element, or the version of RetroPay by Element sometimes referred to as Advanced or Enhanced RetroPay.

This sequence does not apply to RetroPay by Run and RetroPay (by Aggregate)

    Run the Retro-Notifications Report

  1. Run the Retro-Notifications report to identify any backdated changes that have not been included in a payroll run.

    You can save your summary of backdated changes into either an assignment set or an event group.

    Once you have identified the retrospective changes, you can then decide whether to include them in your RetroPay process.

    The Enhanced Retro-Notifications report uses the Payroll Events Model to identify what changes have occurred to your underlying data. If these changes correspond to the retrospective types of change that you want to be notified about, then these changes appear on the Retro-Notifications report.

    See: Setting Up Retro-Notification and RetroPay

    See: Running the Retro-Notifications Report

    2. View RetroPay Status and History

  2. Once you have identified unprocessed retrospective payments, you can determine how you want to process these changes.

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    The Retro-Notifications report identifies the assignments with backdated adjustments. If you defer, then the assignment is not included when you next run RetroPay.

    You can also include additional assignments that the Retro-Notifications report did not identify. This typically occurs when you discover additional backdated adjustments that were not known about when you ran the Retro-Notifications report.

    The following diagram shows the sequence of statuses for each RetroPay status:

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    Once RetroPay processing begins, the initial status changes to an intermediate status of Processing.

    You can query all retro assignments that are at the initial (outstanding) status, and all retro assignments at the final (completed) status.

    The following diagram shows what statuses are included when your query All Outstanding, and All Completed:

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    See: Viewing RetroPay Status and History

    3. Run the RetroPay Process

  3. You enable Oracle Payroll to make retrospective adjustments for the combination of changes identified on the Retro-Notifications report, and subsequently modified when viewing RetroPay status.

    See: Running Enhanced RetroPay

    See: Running RetroPay by Element

    RetroPay by Element already enables you to distribute retrospective payments across individual elements.

    If you have Enhanced RetroPay you can decide whether each retrospective payment requires:

    • A full reprocessing in which you recalculate all amounts for the current payroll. This option is typical when you are processing backdated payments, or when you want to deduct tax for backdated amounts in the period when it was earned, rather than in the current payroll period.

    • A limited reprocessing in which you recalculate only some of the amounts for the current payroll. This option is typical when you are processing corrections, or when you want to deduct tax for retrospective changes in the current payroll period rather than in the period when it was earned.

    Components for RetroPay

    Oracle Payroll describes each different type of Enhanced RetroPay run as a component. For example, you could set up a component Earnings Correction for the element Basic Salary. A component always has:

    • A name (for example, Earnings Correction)

    • A reprocess type (Static, Partial, Reprocess) to determine how to process the component

    Element Spans for RetroPay

    You can also attach element spans to your selected element. An element span provides a start and end date for retrospective processing.

    See Setting Up Retro-Notification and RetroPay

    4. Verify Your RetroPay Results

  4. When you have run the RetroPay process, verify your results and correct any errors.

    5. Run Your Payroll

  5. Finally, run your payroll to reflect the adjustments that you have made for the retrospective payments.

Viewing RetroPay Status and History

You use the RetroPay Status window to control how you want to process changes that have a retrospective impact. You typically find outstanding retrospective changes where changes are entered in Self-Service HRMS independently of Oracle Payroll.

Use the RetroPay Status window to:

You can still use the Retro-Notifications report to identify all outstanding retrospective changes that have not been applied, and group them into an assignment set ready for processing.

See: Running the Retro-Notifications Report

However, the advantage of using the RetroPay Status window is that you can identify what you want to process, or exclude from processing, and then mark your selections for completion. Additionally if you have to create or update multiple retro assignments, you can do so using the Web ADI spreadsheet.

To search for assignments that have retrospective changes

  1. Select the search criteria for assignments that you want to view. If you do not select any criteria, then your search returns all assignments that have retrospective changes. You can search for any of these criteria:

    Name: Specify a name, or search for all names.

    Assignment Number: Specify an assignment or search for all assignments.

    Recalculation Date: Use this start date and end date to determine the period for retrospective changes.

    Status: Select the status that you want to identify.

    • All Completed. This status displays all assignments with retrospective implications that are already processed.

    • All Outstanding. This status displays all assignments with retrospective implications that are not yet processed.

    • Awaiting Processing. This status indicates that this assignment has cleared for processing and that the processing will occur in the next payroll run.

    • Completed. This status indicates that this assignment has now been processed.

    • Completed – Deferred Forever. This status indicates that the retro assignments created by the system are deferred forever. The action of the retro assignment (RETRO_ASSIGNMENT_ACTION_ID) is to changed to –1. The retro assignments are not processed in the future nor reported with the new status.

    • Deferred. This status indicates that an assignment was scheduled for processing, but that the processing was deferred and will not occur until you change the status.

    • Processing. This status indicates that an assignment is being processed.

    Recalculation Reason: This criterion indicates why retrospective processing is necessary and enables you to search particular categories of retrospective change to process them independently of other retrospective changes.

  2. Click Go when you have selected all your search criteria.

To change the status of an assignment

You typically change the status of an assignment when you want to defer processing that was previously scheduled, or to indicate that you have already processed this change even though it was automatically scheduled.

  1. Select the assignment that you want to change.

  2. Select the new status for the assignment from the Change Status list of values.

  3. Click Change Status.

To view the elements included on each assignment

  1. Select the assignment name in the Name column.

  2. View the elements for this assignment, and the Recalculation Reason for each element.

To update or delete elements for each assignment

  1. Select the assignment name.

  2. Click Update to add an element to the assignment.

  3. Click Delete to remove an element from the assignment.

To confirm that your specified requests have been processed

  1. Query the individual assignment, but leave the status field blank.

  2. Alternatively, query all assignments with a status of All Completed or All Outstanding and check the details for your individual assignment.

To create multiple retro lines

  1. Select the Create Retro Lines button.

  2. A spreadsheet opens.

  3. In the spreadsheet that appears, enter new records with a status of Awaiting Processing or Deferred.

  4. Click on Upload. You can select Commit All Rows or Each Row option, if you want the application to validate all records and commit or validate each record prior to uploading the details to the database. If you select Each Row option, then all successful records will be uploaded and error records will not be uploaded. Only on successful validation, the application makes changes to the database.

    If you select the Upload All Rows or Each Row, then the application does not validate the details prior to uploading.

To update the multiple retro lines

  1. Query the assignments with Awaiting Processing or Deferred.

  2. Click on Download to Spreadsheet check box and click Go

  3. In the spreadsheet that opens, you can update the status. You cannot modify any employee or assignment information but can only change the status of the assignment or you can delete the retro entry or update the reprocess date of the retro entry.

    Note: In the Entry Delete/ Update column, ensure to select the applicable value if there are any entry changes made. If you do not select any value the application does not make any changes to the database.

  4. Click on Upload. You can select Commit All Rows or Each Row option, if you want the application to validate all records and commit or validate each record prior to uploading the details to the database. If you select the Each Row option, then all successful records will be uploaded and error records will not be uploaded. Only on successful validation, the application makes changes to the database.

    If you select the Upload All Rows or Each Row, then the application does not validate the details prior to uploading.

Running the Retro-Notifications Report

Use the Retro-Notifications report to

Retro-Notification information is particularly useful when changes with retrospective impact are entered in Self Service HRMS independently of the Payroll department.

The Retro-Notifications report does not perform any RetroPay processing. It only identifies element entries that have changed. You must still run your RetroPay process separately to process these changes. When you produce the assignment set, or event group, you can decide whether to:

You can use the RetroPay Status window to schedule automatic processing.

You run the Retro-Notifications report from the Submit Processes and Reports window.

To run the Retro-Notifications report

  1. Select Retro-Notifications report in the Name field. If the parameters window does not open automatically, click in the Parameters field to open it.

  2. Select the payroll. You can only run this report for a single payroll.

  3. Select the last Report Period that you want to run the report for. The List of Values contains all periods for your selected payroll. The report runs for all periods up to and including the one you select.

  4. Select an Event Group for the report to use. You can only run this report for a single event group. A default event group captures changes made at element level, but you can override the default, if, for example, you are testing your initial setup.

  5. Enter the name of the Assignment Set that you want the report to generate. You can use this assignment set as a starting point for further processing of the assignments identified in the report.

    Note: The assignment set name generated by the report will include what you enter in the Generated Assignment Set field followed by the Report ID.

  6. If you want to produce this report in Portable Document Format, (PDF), select a template.

  7. Select OK and Submit.

    When you have generated the assignment set remember to run your RetroPay process for those retrospective changes that you want to process. You can either run your RetroPay process directly or, if your RetroPay process is RetroPay by Element, or Enhanced RetroPay you can use the RetroPay Status window to schedule your processing.

Running the Retro-Notifications Report (Enhanced and Enhanced PDF)

Use this report to

This information is particularly useful when changes with retrospective impact are entered in Self Service HRMS independently of the Payroll department.

The Retro-Notifications report does not perform any RetroPay processing. It only identifies element entries that have changed. You must still run your RetroPay process separately to process these changes. When you produce the assignment set, or event group, you can decide whether to:

You can use the RetroPay Status window to schedule automatic processing.

You run the Retro-Notifications (Enhanced) report from the Submit Processes and Reports window.

To run the Retro-Notifications (Enhanced) report

  1. Select the payroll. You can only run this report for a single payroll

  2. If you want to see the retro-notifications for a particular event group, select an overriding event group.

  3. If you are running the PDF-enabled version of this report, select a template for your PDF output.

  4. Select OK, and submit.

Running Enhanced RetroPay

Use the Enhanced RetroPay process to distribute backdated amounts or corrections that you have identified from the Retro-Notifications report.

You run the Enhanced RetroPay process from the Submit Requests window.

To run the Enhanced RetroPay process

  1. Enter an effective date to indicate the date from which you want to create the retrospective elements for Enhanced RetroPay process.

  2. Select the payroll.

  3. If you want to create retrospective entries in a different pay period other than effective date, enter an entry creation date. The application creates retrospective entries in the pay period in which the Entry Creation Date occurs.

    If you leave this field blank, the application creates the default retrospective entries as of Effective Date.

  4. Click Submit

Running RetroPay by Element

Use the RetroPay by Element process to distribute backdated amounts or corrections that you have identified from the Retro-Notifications report.

You run the RetroPay by Element process from the Submit Requests window.

To run the RetroPay by Element process

  1. Select an assignment set.

  2. Select an element set.

  3. Select a start date and end date.

    The end date must be within the current payroll period and must have a date after the latest effective check/cheque date.

  4. Click Submit

    Oracle Payroll temporarily rolls back and reprocesses all the payrolls for all assignments included in the assignment set from the start date specified. The application compares the old balance values with the new ones, and creates entry values for the RetroPay elements based on the difference.

    These entries are processed for the assignments in the subsequent payroll run for your current period.

    There are no changes to your audited payroll data.

Running RetroPay by Run or by Aggregate

You run the RetroPay processes in the Submit Requests window.

To run the RetroPay processes

  1. In the Name field, select your RetroPay process.

  2. In the Parameters window, select the assignment set.

  3. Select the RetroPay set.

  4. Enter the start date and end date for the recalculation. The default end date is the current date. The application will create the RetroPay element in the payroll period that includes the current date.

    The end date must be within the current payroll period and must have a date after the latest effective check/cheque date. If you already processed a run for the pay period, for example, because of an earlier supplemental run, you cannot include the RetroPay elements for the current regular payroll run. To process these RetroPay elements you must include them in the subsequent run.

  5. Click Submit.

    Oracle Payroll temporarily rolls back and reprocesses all the payrolls for all assignments included in the assignment set from the start date specified. The application compares the old balance values with the new ones and creates entry values for the RetroPay elements based on the difference.

    These entries are processed for the assignments in the subsequent payroll run for your current period.

    There are no changes to your audited payroll data.

Running Quick RetroPay

Run Quick RetroPay to process any retrospective payments for a single assignment. You run the Quick RetroPay process from the Submit Requests window.

Note: It is not mandatory to run the Retro-Notifications Report for QuickRetropay process.

To run the Quick RetroPay process

  1. Enter a date on which you want to create the derived retro element entries. This is mandatory.

  2. Select the assignment number of the assignment for which you want to run the backdated change. This is mandatory.

  3. Enter an earliest date from which you want to reprocess the assignment backdated changes. If you do not specify any date, then the application calculates it internally. This is optional.

  4. If you want the retro-notifications for a particular event group, select an overriding event group.

  5. Click Submit.

Exception Reporting

Payroll Exception Reporting: Overview

You run exception reports immediately after the payroll run to identify potential overpayments or underpayments. This helps you to avoid corrections when you accidentally make an incorrect payment. For ease of use, you can do each of the following to control the output and definition of your exception reports:

Examples of Exception Reporting Criteria

You must always select a balance and a balance dimension for exception reporting. This table lists additional criteria that you must define, explains what each one means, and gives an example to illustrate how you use them:

Exception Criterion What it Identifies Example
Comparison Type The period against which you want to compare when determining whether an exception has occurred Average in Months
Comparison Value This is a numerical value to determine how averages are calculated when you are using an average as your basis for comparison If you select 3 as the comparison value for a comparison type of Average in Months, then you are comparing the current month with the average of the previous 3 months.
Variance Type The category of variance that you want to report on. Either Percentage or Amount
Variance Value The magnitude of overpayment or underpayment that you want to report on. Variance Value of 500 If Amount is your variance type, and you are reporting on a total amount of 5000, then a variance value of 500 means that amounts greater than 5500 are regarded as overpayments and amounts less than 4500 are regarded as underpayments.
Variance Operator The precise range of variance that you want to report on. You can use variance operators to specify that you are only interested in a particular section of the range defined by the variance value. Greater than, Less than, Equal

These are only examples. There is an extensive list of comparison types and variance operators enabling you to set the required degree of precision for your own reports.

See Comparison Types for Exception Reporting, Oracle HRMS Payroll Processing Management Guide

See Variance Operators and How You Can Use Them, Oracle HRMS Payroll Processing Management Guide

Exception reporting activities are as follows:

Setting Up Exception Reports

Running Exception Reports

Running the Payroll Message Report

You run the report in the Submit Requests window.

To run the Payroll Message Report

  1. In the Name field, select the report name. Then enter the Parameters field to open the Parameters window.

  2. Select the name of the payroll for which you want to see messages.

    This is the only required field. If you leave the next three fields blank the system brings back all messages for all processes connected to this payroll in all periods.

  3. Select a payroll period for which to view messages.

    This restricts payroll messages to the period you select.

  4. Select a payroll process type.

    This restricts payroll messages to the payroll process type you select. All messages for all runs of this process during the period selected are returned.

  5. Select a payroll process.

    This restricts payroll messages to one instance of the payroll process type selected. If you leave the Process Type field blank you can choose one instance of any payroll process for the period selected.

  6. Select a message severity level for the messages in the report, or leave the field blank to see messages of all levels of severity.

  7. Select assignment number or employee name as sort criteria for the report. The default is employee name.

  8. If you want to produce this report in Portable Document Format, (PDF), select a template.

  9. Choose the Submit button.

Reconciling Payments

You can use Oracle Payroll in combination with Oracle Cash Management to verify that payments have been processed. The process is:

  1. Import the bank statement. You do this in Oracle Cash Management.

  2. Run the automatic reconciliations process. You do this from Oracle Cash Management.

  3. View the results of the reconciliation process. You can do this either through Oracle Payroll, or Oracle Cash Management.

    Note: For US only: For EFT or NACHA payments to be reconciled in Oracle Cash Management, the following 3 pieces of data are checked: amount, transaction date and batch name (file ID + company ID). Manual reconciliation will check amount and transaction date only.

    To do this in Oracle Payroll, see Viewing Payroll Process Results, Oracle HRMS Payroll Processing Management Guide

    In Oracle Cash Management, you can view the following reports:

    • Available Transactions report

    • AutoReconciliation Execution report

  4. Identify any payments that are marked in error, and reconcile them manually.

    Note: If you are using Oracle Payroll with Oracle Cash Management for the reconciliation of payments then you will need to set up accounting reference data when you are setting up Oracle Cash Management

    See Accounting Reference Information for Cash Management Integration, Oracle HRMS Implementation Guide

Setting Up Cash Management Integration with Oracle Payroll for EFT Reconciliation

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 South Africa legislation:

Oracle HRMS provides a reconciliation function, PAY_ZA_EFT_RECONCILIATION. get_eft_recon_data, for ZA EFT Payments (ACB). 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:

To specify your own Unique Identifier:

  1. Add the following data to the lookup PAYMENT_TRX_CONC_IDENTS:

    • Code: ACB

    • Meaning: <Your Unique Identifier>

    • Enabled: Y

  2. Create your reconciliation function. For details on how to write a reconciliation function, refer to the note ID 949409.1 on My oracle Support.

  3. Use the HRMS Manager responsibility and navigate to the Table Values window under Other Definitions. Add this function in the user table ZA_EFT_RECON_FUNC.

Running the Deductions Register

You run the Deductions Register after a pay run. This report shows selected elements and their deductions for each employee. You can then send this report to an external organization, usually with a cheque payment.You run this report from the Submit Requests window.

To run the Deduction Register report

  1. Select Deduction Register in the Name field.

  2. Select the name of the payroll or consolidation set in the Parameters window. If you select a payroll, the default consolidation set displays automatically.

  3. Select a pay period.

  4. Change the sort sequence if you want to sort the report by employee name and not employee number (the default).

  5. Select the element(s) to include in the report.

  6. Choose the Submit button.

Running the Payment Register

You use this report to query or to produce a listing of a specific payment element for a particular payroll. For example, you could run this report to show which employees received overtime payments.You run this report from the Submit Requests window.

To run the Payment Register report

  1. Select Payment Register in the Name field.

  2. Select the name of the payroll or consolidation set, in the Parameters window, to run the process. When you select a payroll, the default consolidation set displays.

  3. Select the pay period.

    The report is sorted by employee number by default, but you can change this to sort by employee name.

  4. Select the element that you are reporting on.

  5. Choose the Submit button.

Running the Manual Payments Process and Report

This process records employee assignments that are paid using a manual payment method. The report shows you the manual payments made for the selected payrun and assignments.

You run the process and report from the Submit Requests window.

To run the Manual Payment process

  1. Select Manual Payment in the Name field.

  2. Select the payroll and/or the consolidation set for which you are creating manual payments in the Parameters window.

  3. Enter the start date from which manual payments must be made. If left blank, Oracle Payroll will process all manual payments that have not been paid up to the specified end date.

  4. Select the payment method.

  5. Choose the Submit button.

To run the Manual Payments report:

  1. Select Manual Payments Report in the Name field.

  2. Select the payment run for which manual payments are to be made in the Parameters window.

  3. Choose the Submit button.

Running the Cash Process and Coinage Analysis Report

The Coinage Analysis report shows details of the coinage breakdown of cash payments for each location and a total for each payroll.

Run the Cash process before you run the Coinage Analysis report.

Manual payments are not included in the Cash process and therefore do not appear on the Coinage Analysis. See: Manual Payments Process.

You run both processes from the Submit Requests window.

To run the Cash process

  1. Select Cash in the Name field.

  2. Select the payroll or consolidation set, in the Parameters window, for which you are creating cash payments.

  3. Enter the start date from which cash payments must be made. If left blank, Oracle Payroll processes all cash payments that have not been paid up to the specified end date.

  4. Select the payment method.

  5. Choose the Submit button.

    You can now run the Coinage Analysis Report.

To run the Coinage Analysis report

  1. Select Coinage Analysis in the Name field.

  2. Select the payment run for the coinage breakdown in the Parameters window.

  3. Choose the Submit button.