Elements are essential compensation and benefit components that represent earning types, benefits such as pension plans, absences, expense reimbursements, and even tangible items given to a person, such as a computer.
Oracle Time & Labor uses elements to hold time balances. The system uses regular elements to hold balances to pay workers for their normal hours worked, and you can define premium elements to hold balances to pay workers additional sums. You can define premium elements, absence elements, and shift elements in Oracle Time & Labor.
Yes, you can define a pay rate for all your premium elements. For example, you may wish to pay an overtime element at 1 1/2 the rate of pay, and pay Third Shift a flat rate of pay of 10 dollars above the normal rate. This is accomplished by entering these values on the Element Time Information window.
Oracle Time & Labor uses elements to hold time balances. The system uses regular elements to hold balances to pay workers for their normal hours worked, and you can define premium elements to hold balances to pay workers additional sums. You can define premium elements, absence elements, and shift elements in Oracle Time & Labor.
If you enter an element directly on the timecard, you override the explosion process, and indicate that you wish to pay the entered hours at the selected hours type.
For example, if a worker enters ten hours on the timecard, and has an earning policy that indicates that they should receive 2 hours of overtime, when you override the hour's type to “hard work premium," you pay all ten hours at this rate.
You can define premium elements for:
overtime
double time
working with specific equipment, and so forth
You can define premium elements and assign these elements to a Premium Eligibility Policy, and a Premium Interaction Policy. You can also enter premium elements directly on a timecard. When you enter premium elements directly on the timecard, the timecard explosion process does not process these elements Oracle Time & Labor copies them into the detail portion of the timecard.
You can create absence elements for various reasons such as vacation, sick time, and jury duty. When a worker is absent, you can enter an absence element on the timecard. The timecard explosion process does not process these elements.
You define shift premium elements for those shifts that require a special rate of pay. You can create shift premium elements and assign them to a shift differential policy, or you can enter a shift premium directly on the timecard. By doing so, you override the current explosion process, and indicate you wish to pay this premium for the hours entered.
Elements are essential compensation and benefit components that represent earning types, benefits such as pension plans, absences, expense reimbursements, and even tangible items given to a person, such as a computer.
To use elements for time and labor data entry, you must update the elements you define in Oracle Human Resources or Oracle Payroll with some additional information, as follows.
To set up elements for time and labor data entry
In the Element window, ensure that the elements you plan to use are defined as nonrecurring, with Multiple Entries Allowed.
Note: US and Canadian Payroll users: If you are creating new earnings types, use the Earnings window instead of the Element window.
In the Input Values window, ensure that you have one input value called:
Hours with Units = Hours in Decimal Format (2 places), Sequence = 1, and User Enterable and Database Item checked.
Important: You must have an input value of Hours, or the application will error, and not allow the element to be saved.
If you are autogenerating the element's values from time management structures and policies, it must also have the following input values:
Dayswith units = Day, Sequence =1, and Database Item checked.
Important: If you use absence integration, then you must set up elements with an input value of days to capture day based absences.
Pay Value with Units = Money, Sequence = 1, and Database Item checked.
Multiple (if applicable, usually for overtime, shifts and premiums) with the Units = Number, Sequence = 2, and User Enterable and Database Item checked.
Rate with Units = Number, Sequence = 3, and User Enterable and Database Item checked.
Rate Code with Units = Character, Sequence = 4, and User Enterable and Database Item checked.
Jurisdiction with Units = Character, Sequence = 5, with User Enterable checked, Formula = Jurisdiction_Validation, and Warning or Error = Error.
Important: Jurisdiction input is required for US implementation.
Deduction Processing with Unit = Character, Sequence = 6, with Required field and User Enterable checked, Default = All Deductions, Lookup = US_DEDUCTION_PROCESSING
Separate Check with Unit = Character, Sequence = 7, with Required and User Enterable checked, Default = NO, Lookup = YES_NO.
In the Application Utilities Lookups window, check the lookup values for the Earning Category lookup type. If you require additional categories, create them in this window.
In the Element Time Information window, select an earning category and other relevant information such as absence reason, premium type and amount, and expenditure type.
Link the element to assignment components, using the Element Link window, if you have not already done so.
Element links determine which groups of people are eligible for elements, such as only employees on a certain payroll. If you determine your eligibility rules by the Premium Eligibility and Earning policies, then you can create an open link, for example, a link without selecting any eligibility criteria. You must define a link before employees can receive the element.
Caution: Use caution when establishing elements links as they determine what elements are available for display within the Alternate Names definition.
Assign each element you use for time and labor data entry to an earnings category, and enter additional information as appropriate for that category. You only need to enter this information for elements assigned to people whose time is autogenerated from time management structures and policies.
You can exclude elements from timecard explosion by selecting the Exclude From Explosion checkbox. Select this checkbox only if the element does not belong to the following:
Earning Policy
Earning Group
Premium Eligibility Policy
Premium Interaction Policy
Shift Differential Policy
Use the Element Time Information window.
To enter element time information
Select the element.
Select the appropriate earning category.
Complete the remaining fields, as appropriate, depending upon the earning category you select. (For example, if the element is an overtime earning, then select Factor/Multiple as the premium type).
If you select Overtime as the category, then the Accrual Credit Element is enabled. To credit the selected overtime element to accruals, select a value from the list. The list of values includes all absence elements in Net Calculation rules added to accrual plans with Effect on Net set to Add.
For a time card with overtime elements linked to Accrual Credit Elements, the actual credit will take place only after the timecard is processed to payroll.
If you require the accrual credit functionality, then you must set up the accrual plan for the employees for whom you want to use the accrual credit.
Other conditions:
The credit element is effected with Entry Effective Date and hours equal to the hours and date of the Overtime element to which it is linked.
Linking Overtime Elements to credit elements used in Net Calculation Rules is via individual elements. For example, an employee may be eligible for 2 types of overtime but only one of them may be eligible for credit.
The net calculation rule linked to Overtime element must be added to the accrual plan linked to the employee to have the effect of overtime credit.
The accrual plan is effected with added hours only after all payroll processes are complete – Transfer time from OTL to BEE, Validate for BEE, Transfer to BEE, and BEE Batch Process – Transfer.
All accrual related hours must would be rolled back when you carry out normal OTLR rollback options.
To use absence elements in time management structures and policies, always create absence elements with Absence Earnings as the category.
Select absence type, for absence earnings.
There is no need to enter absence points. This is for future use, and is not required.
Select the premium type (if applicable).
The premium type determines whether the premium is calculated as a rate per day or a fixed amount per day (both overriding the normal hourly rate), or as a factor or multiple of the normal hourly rate.
Enter the appropriate premium amount if you selected a premium type.
Enter the appropriate processing order to indicate which premiums to calculate first, and to ensure the application applies the results in subsequent premium calculations.
Tip: Low numbers process before higher numbers.
This field is required only when a premium interaction policy applies to this element. Use a whole number with increments of at least 10 between elements.
Select the appropriate expenditure type. This is used by the interface to Oracle Projects.
Select the System Linkage Function from the list of values. This is used by the interface to Oracle Projects.
If you wish to assign points to the element, enter the appropriate point.
If you select a day based absence element, then enter Days to Hours conversion factor. The value must be equal to the number of hours a whole day of absence means as per your business rules. For example, if a day of absence means the employee is absent from work for 8 hours, then the value that you enter must be 8.
If you want to exclude the element entry from timecard explosion, select the checkbox Exclude From Explosion.