Payroll Payments and Distributions

Payroll Payment and Distributions Overview

Using Oracle HRMS you can define payment methods for your enterprise and define any rules for validating or processing the distribution of pay.

Payroll Payment and Distributions in Oracle HRMS

You provide for payment and distribution by defining payment methods for your enterprise and then specifying which of these organizational payment methods are valid for the payrolls that you create. This enables you to set up a flexible pattern of payment in which you can pay individual employees by a single payment method, or by a combination of valid payment methods.

Key Concepts

To enable you to set up payment and distributions correctly, you need to understand these key concepts:

• Payment methods for your enterprise, Oracle HRMS Payroll Processing Management Guide

• Cash Management and Oracle Payroll

Reporting on Payroll Payment and Distributions

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

Payroll Payment and Distributions

You can use Oracle Payroll to calculate the payments and distributions for all your employees

Can you verify that payments have been made?

Yes. Oracle Payroll is fully integrated with Oracle Cash Management. This enables you to use Oracle Cash Management to verify that payments have been cashed. Reconciliation can be applied to payroll checks/cheques and third party checks/cheques. You can identify which checks/cheques have been cleared and the date on which they were cleared. You can also view a reconciliation report which shows if voided checks/cheques appear to have been cashed.

Can Oracle Payroll handle different pay frequencies?

Yes--you can set up different pay frequencies, for example weekly or monthly, so that you can pay different sets of employees at different intervals. Each payroll can only have a single pay frequency and you must set up at least one payroll for each pay frequency that you define.

Multiple payrolls in a Business Group

Note: Semi-monthly is not a valid frequency for UK payroll users.

Can you group employees according to payroll categories in your organization?

You can assign people to any work structure such as an employment category or a particular location. You can also define a special grouping for your organization. For example, you can create a group to indicate membership of a union.

Can you set up a payroll to process multiple assignments for an employee?

Yes. If the Multiple Assignment Prepayments has been enabled for your localization, you will see the Multiple Assignment check box on the Payroll window. The process is activated by selecting the Multiple Assignment check box.

Do you have flexible control over payment methods?

You can define a payroll to include different types of payment method - for example, payment by bank transfer, payment by check/cheque, and so on. When you process the payroll you can then pay the set of employees for that payroll in any of the following ways:

• All employees receive payment by a single default payment method for their payroll.

• Employees receive payment by a combination of the payment methods that you have defined for their payroll.

• Individual employees receive payment that can be distributed between the defined payment methods in proportions different from those applying to other employees belonging to the same payroll.

Can you model your payslip?

Yes, you can model your payslip, if the Payslip Modeling functionality is enabled for your localization. Contact your system administrator to check if it is available for your localization.

Employees and payroll administrators can model a paycheck/payslip by running a mock payroll run.

Payroll Payments and Distributions

Cash Management and Oracle Payroll

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.

Defining a Payment Method

Define payment methods for the enterprise in the Organizational Payment Method window.

You can define multiple payment methods for the same type. For example, you might have different source bank accounts for payments.

Note: After you define your Payment Methods you can enter the appropriate methods for each payroll you define.

After you assign an employee to a payroll you can enter payment details for each employee in the Personal Payment Method window. For example, for employees who work overseas, you may want to record more than one payment method with different percentages, and currencies.

To define a payment method

1. Set your effective date to the date you want to begin using the payment method.

2. Enter a name for the payment method, and select the type that has been predefined for your country, for example, there is a predefined Direct Deposit type for Singapore.

   You can create as many payment methods for each type as you require. For example, if you have different source bank accounts for different payrolls, you must create separate payment methods.

3. The base currency for the Business Group appears. For some payment methods, you can select another currency.

4. Select the Third Party Payment check box if this method is for making payments to third parties, for example for employee benefits or court-ordered deductions.

5. Enter the Bank Details field to open the Bank Details window. Enter information about the account from which payments are coming.

6. Enter the Company's ID in the Further Information field if you are defining a Direct Deposit payment method. The Company ID is the identification code that is assigned to the organization for logging into the IDEAL direct deposit system.

   Select the SWIFT BIC, if you are using the Direct Deposit (Enhanced IBG Format).

   You do not need to enter further information for any other payment types.

7. Select Set of Books to indicate the set of books to use if you intend to reconcile payments using Oracle Cash Management.

   Note: You can only use Cash Management reconciliation if you are defining a cheque payment method.

8. Select GL Cash Account to indicate the cash account to use for the reconciliation of payments

   The entry for Description is entered by default, depending on what you enter as the GL Cash Account details.

9. Save your work.

Setting Up a Global Statement of Earnings

Oracle HRMS enables you to view the online statement of earnings (SOE). To enable the correct display of values on your statement of earnings, you must complete each of these setup steps.

To set up the global statement of earnings:

1. Create a user category through the lookup SOE_USER_CATEGORY.

   See: Creating User Types and Statuses, Oracle HRMS Enterprise and Workforce Management Guide

2. Set the value of the user category that you created as the profile value for the profile PAY: Statement of Earnings User Category.

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

3. Add the predefined element sets for your earnings and deductions to the SOE Information EIT at the business group level.

   For Canadian and US users only: SOE Information functionality is not available for Canadian and US legislations.

   Swedish users only: Ensure that you have enabled your elements to display a code. You do this at the business group level by entering Extra Element Details for each element. When you select the EIT, you can make a further selection of Element Name, and specify a code for your selected element. This ensures that your SOE displays the element code in the earnings, deductions, and information regions.

   See: Business Group: Entering SOE Information, Oracle HRMS Enterprise and Workforce Management Guide

4. Create an element set containing all the elements that you want to see displayed in the information region of the SOE.

   For South Africa only: The Information region has been renamed to Fringe Benefits and Other Non Payments region. You use the predefined ZA SOE Fringe Benefits and Other Non Payments element set to display information in that region. You enter this element set in the Elements 3 field when you define your SOE Information at business group level.

   The South African localization does not use balance attribution.

   Users should now restart the Apache server as instructed in the final step.

5. Complete the SOE Detail Information EIT by adding the elements in your element set, and the SOE display balances to the EIT at the business group level.

   See: Business Group: Entering SOE Detail Information, Oracle HRMS Enterprise and Workforce Management Guide

6. Link the predefined SOE balance attribute to your business group. The attribute name is likely to have a leading localization code followed by the stem _SOE_BALANCE_ATTRIBUTES.

7. Define the attributes for your SOE balances.

8. Restart the Apache server and then check the SOE to ensure that the SOE displays the requirements that you selected.

Running the Enable or Disable Global SOE Process

You use this process to determine how your statements of earnings are displayed. You have a choice of the forms-based SOE, or the global SOE which is framework-based and readily customizable. You can either:

• Enable the global SOE if you want to override the forms-based default

• Disable the global SOE if you prefer to continue using the old forms-based format.

You run the Enable or Disable Global SOE process from the Submit Request window.

To run the Enable or Disable Global SOE:

1. Select the Enable or Disable Global SOE process in the name field.

2. Enter whether you want to Disable or Enable the Global SOE in the parameters window.

3. Click OK and choose the Submit button.

Viewing Statement of Earnings

Oracle Payroll enables you to view an employee's statement of earnings (pay advice) without having to run the Pay Advice report.

You do this using the Statement of Earnings window.

There are various ways to access statement of earnings information. The information displayed may vary depending on whether you have run the PrePayments process or just a payroll run.

The information displayed in the Statement of Earnings window reflects the information in the printed pay advice.

The payroll run generates four types of Statement of Earnings (SOE):

• Master Assignment Action SOE for each employee and shows aggregate Year to Date balances

• Regular Payroll Run SOE for each employee and shows Period to Date and Year to Date balances

• Separate Check SOE only if employee has an element with Separate Check input value set to Yes

• Tax Separate Run SOE if employee has an element(s) with any of the following input values:

  • Separate Check set to Yes

  • Tax Separately set to Yes

  • Deduction Processing is set to other then All

Canada only: The Payroll Run SOE displays one "Master Assignment Action" master record and multiple records with second and third layer run types.

If you are processing Multiple Assignment Payments, then the PrePayment Statement of Earnings displays consolidated earnings and deductions information. The header information displayed on the Statement of Earnings is obtained from the primary assignment; however, if this assignment is not processed, then the header information is taken from the first assignment processed in the PrePayment process.

To view the last payroll with PrePayments run against it

Perform one of the following:

• Select View | Statement of Earnings.

• From the Assignment window, choose Others and select Statement of Earnings.

• Choose the Statement of Earnings window in Fastpath.

To view the most recently run QuickPay results

1. From the Assignment window, choose Others and select QuickPay.

2. Choose View Results, and select Statement of Earnings from the View Results window.

To view the statement of earnings information without running PrePayments

See Viewing Assignment Process Results for an Assignment or Viewing Assignment Process Results for a Payroll Assignment.

Setting Up Payslip Information and Generating Payslips

You need to identify any additional information you want to appear on your payslips using payslip balances and elements. Once you have identified the information to archive and display, run your regular payment and archive processes and generate your payslip for printing or viewing online.

To set up your payslip

1. Select the payslip balances and elements to be included in your payslips.

   See: Entering Payslip Information, Oracle HRMS Enterprise and Workforce Management Guide

   For UK, Netherlands, and South Africa: Enter the information balances and elements through the following:

   See: Identifying Balances for the Payslip, Oracle HRMS Enterprise and Workforce Management Guide and Identifying Elements for the Payslip, Oracle HRMS Enterprise and Workforce Management Guide

   For Ireland: Enter the balances and elements information in the SOE Balances and SOE Elements windows.

   See: Selecting SOE Balances, Oracle HRMS for Ireland Supplement and Selecting SOE Elements, Oracle HRMS for Ireland Supplement

2. For online payslips, enter self-service preference information to indicate how you want to view them. You can specify these settings at the organization, location, and person levels.

   See: Entering Self-Service Preference Information, Location Extra Information Types, Oracle HRMS Enterprise and Workforce Management Guide, and Person Extra Information Types, Oracle HRMS Workforce Sourcing, Deployment, and Talent Management Guide

3. Configure your online payslip to view through Oracle Self-Service.

   See: Online Payslip, Oracle Self-Service Human Resources Deploy Self-Service Capability Guide

   US, Canada, Mexico, and UAE only: Oracle Payroll uses an RTF template to produce the online payslip through XML Publisher. You can use the default template or create your own.

   See: Oracle XML Publisher Administration and Developer's Guide and Oracle XML Publisher Report Designer's Guide.

   For Ireland: To include the regular payment date of the payroll period in your online payslip, set the Visible property of the Regular Payment Date field to Yes.

4. US, Canada, Mexico, and UAE only: Oracle Payroll provides the ability to customize the content of your employee payslips to suit your business needs. Prior to making any changes, however, you should review the default content to best determine what changes you require. See: Payslip Region Information, Oracle HRMS Payroll Processing Management Guide (Mexico)

   To change balances or include additional balances on the payslip:

   1. From the Total Compensation menu, select Basic and then Balance.

   2. Query for the element whose balance you want to add, and click Attribute.

   3. Click on a new row under Attribute, and choose the attribute you want to display from the list of values. This represents where the current balance will appear on the payslip.

   4. Choose a dimension from the list of values.

   5. To delete an entry, select the row and click Delete.

   6. Save your changes.

   Note: These changes do not take effect on the payslip until you rerun the Payroll Archiver Process for the affected payroll period.

Generating the Payslip

You must have completed the payroll runs, prepayments, and payment processes prior to generating the payslip.

5. Run the archive process to gather the latest payroll information.

   See: Extracting Information to Appear on the Payslip

6. You can view the payslip online through Self-Service.

7. Print your payslips in the usual way. Users in the Netherlands and China, run the payslip report to produce a formatted report ready for printing and sending out to your employees.

   See: Printing the Payslip

8. US and Canada only: Oracle Payroll provides the flexibility to choose the way annual salary is calculated and reported on the Online Payslip (both HTML and PDF). This flexibility is available through the HR: Base Annual Salary Display on Standard Work Conditions profile option.

   See: Defining the Profile Option for Pay Annualization, Oracle HRMS Payroll Processing Management Guide (US)

Extracting Information to Appear on the Payslip

You run the payslip archive process to extract and gather relevant information to appear on your employees' payslips. The archiver accesses the payslip information for the dates you select and copies the information across to storage archive tables, where it is picked up and converted into a format for printing and distributing to employees or for viewing online through the self service application.

Run this process after each payroll period to enable Self-Service. You must complete the payroll runs, prepayments, and payment processes before you can run the payslip archive process.

Netherlands, US, and Mexico only: If you are producing paper reports, use this process to view your current payslip.

Run the payslip archiver from the Submit Request window.

To run the payslip archiver

1. Select your country's payslip archive process in the Name field.

   China and Netherlands: Select the Payslip Archiver.

   India: Select the Payroll Reports Archive (India).

   Ireland: Select the IE Legislative Reports Generator. See: Running the Legislative Reports Generator, Oracle HRMS for Ireland Supplement

   Mexico: Select the Payroll Archiver. See: Managing the Payroll Archiver, Oracle HRMS Payroll Processing Management Guide (Mexico)

   South Africa: See: Pay Advice Generation - Self Service (South Africa), Oracle HRMS for South Africa Supplement

   UK: See: Payslip Generation Self-Service, Oracle HRMS Payroll Processing Management Guide (UK)

   US and Canada Payroll: If required, you can set the PAY:Show Payslip with Zero Net Pay profile option to archive the payroll data and generate payslips for those employees receiving a net pay amount of zero.

   For US, see: Managing the Payroll Archive, Oracle HRMS Payroll Processing Management Guide (US)

   For Canada, see: Running the Canadian Payroll Archiver, Oracle HRMS Payroll Processing Management Guide (Canada)

2. In the Parameters window, select a payroll name and consolidation set. This selects the employees for whom you want to run the report. When you select a payroll, the default consolidation set is displayed.

3. Enter the start and end dates for the period of time you want the information extracted. You typically run this process for the same dates you ran your payroll.

4. India: Select whether you want to mail individual payslip or view consolidated payslips in the Generate Payslip field.

5. Choose Submit.

After running the Payroll Archiver, you can use the Payroll Actions Not Processed report to see what employees (and corresponding payroll processes) were not archived but did fall within the report's parameters.

Running the Pay Advice Alignment Report

Run this report before you run the Pay Advice report. It shows printer alignment details for your sample pay advice.

You run the Pay Advice Alignment report from the Submit Requests window.

To run the Pay Advice Alignment report

1. In the Name field, select the report name.

2. Choose the Submit button.

Running the Payments Summary Report

Run this report when you want to see payments totalled by payment method type and organizational payment method for a specified payroll and payroll period. Account details for each organizational payment method are also listed.

You run the report in the Submit Requests window.

To run the Payments Summary Report

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

2. Select the payroll and payroll period for which you want to see the information.

3. If you want to restrict the information by consolidation set, select the name of the set.

4. Choose the Submit button.

Running the Pay Advice Report

Run this report to generate pay advice for all employees for a specified payroll and period. This is a sample report which you can customize. You run it after completing the Pre-payments process for a payroll. To check printing alignment before generating pay advice run the Pay Advice Alignment report.

You run the Pay Advice report from the Submit Requests window.

To run the Pay Advice report

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

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

3. Enter the period for which you want to generate pay advices and the date on which you want to generate them.

4. Do one of the following:

   • If you want to generate pay advices for all employee assignments, leave the Assignment Number field blank.

   • If you want to generate a single pay advice for an employee assignment, enter the employee assignment number.

5. Select the sort orders 1 to 6 for employees whose mailing address is set to Office/Blank.

   Note: Use the people group flexfields to capture or configure office address details.

6. Choose the Submit button.

   Note: You can also view this report from the Assignment Process Results window, where you select an individual assignment and the process you want to view the report for.