The following table shows the predefined elements for Sweden.
| Element Name | Description |
|---|---|
| Accommodation Benefit | Enter this recurring element to capture all the relevant information about the employee's accommodation benefit. |
| Accommodation Employee | This non-recurring element holds all the accommodation benefit values that add to the employee's taxable base. |
| Accommodation Employer | This non-recurring element holds all the accommodation benefit values that add to the employer's taxable base. |
| Car Benefit | Enter this non-recurring element to capture all the relevant information regarding the employee's car benefit. |
| Car Employee | This non-recurring element holds all the car benefit values that add to the employee's taxable base. |
| Car Employer | This non-recurring element holds all the car benefit values that add to the employer's taxable base. |
| Court Order | This recurring element for each person initiates the main formula that processes the court order deductions. |
| Court Order Arrears | This recurring element for each person initiates the formula that processes the court order deduction arrears. |
| Court Order Information | Enter this recurring element, for the employee's primary assignment, to record the details required to process court orders. |
| Employee Tax Percentage | This non-recurring element holds the employee's tax based on percentage taken from the Tax or Tax Card element. |
| Employee Tax Table | This non-recurring element holds the employee's tax calculated from the relevant tax table. |
| Employer Tax | This recurring element initiates the formula that processes the employer's tax based on the employer tax percentage. |
| Entertainment | This non-recurring element initiates the formula that processes the tax on employee's entertainment expenses. |
| Food Benefit | Enter this non-recurring element to capture all the relevant information regarding the employee's food benefit. |
| Food Employee | This non-recurring element holds all the food benefit values that add to the employee's taxable base. |
| Food Employer | This non-recurring element holds all the food benefit values that add to the employer's taxable base. |
| Fuel Benefit | Enter this non-recurring element to capture all the relevant information regarding the employee's fuel benefit. |
| Fuel Employee | This non-recurring element holds all the fuel benefit values that add to the employee's taxable base. |
| Fuel Employer | This non-recurring element holds all the fuel benefit values that add to the employer's taxable base. |
| Lumpsum Tax | This non-recurring element holds the tax calculated on the lumpsum amount paid to the employee. |
| Mileage | Enter this non-recurring element to capture information about the mileage logged by a person availing the car benefit where the cumulative distance is in Swedish miles. |
| Mileage Employee | This non-recurring element holds the tax calculated on employee's mileage expenses. |
| Mileage Employer | This non-recurring element holds the employer's tax contribution based on an employee's mileage expenses. |
| Mileage Not Paid Through Payroll | Enter this non-recurring element to capture information about the mileage logged by a person availing the car benefit when the mileage expenses are not paid through payroll. |
| Mileage Not Paid Through Payroll Employee | This non-recurring element holds the tax calculated on employee's mileage expenses that are not paid through payroll. |
| Mileage Not Paid Through Payroll Employer | This non-recurring element holds the employer's tax contribution based on an employee's mileage expenses that are not paid through payroll. |
| Mileage Paid | This non-recurring element holds the mileage amount paid to the employee through payroll. |
| Net to Gross | Enter this non-recurring element to perform the net-to-gross calculation. |
| Per Diem Other Countries | Enter this recurring element to capture all the details about the employee's per diem expenses during overseas travel. |
| Per Diem Other Countries Employee | This non-recurring element holds the employee's tax on per diem expenses during overseas travel. |
| Per Diem Other Countries Employer | This non-recurring element holds the employer's tax based on employee's per diem expenses during overseas travel. |
| Per Diem Other Countries Not Paid Through Payroll | Enter this non-recurring element to capture all the details about the employee's per diem expenses during overseas travel that are not paid through payroll. |
| Per Diem Other Countries Not Paid Through Payroll Employee | This non-recurring element holds the employee's tax on per diem expenses during overseas travel that are not paid through payroll. |
| Per Diem Other Countries Not Paid Through Payroll Employer | This non-recurring element holds the employer's tax based on employee's per diem expenses during overseas travel that are not paid through payroll. |
| Per Diem Other Countries Paid | This non-recurring element holds the amount that is paid to the employee for per diem expenses during overseas travel. |
| Per Diem Sweden | Enter this non-recurring element to capture all the details about the employee's per diem expenses for travel within Sweden. |
| Per Diem Sweden Employee | This non-recurring element holds the employee's tax on per diem expenses for travel within Sweden. |
| Per Diem Sweden Employer | This non-recurring element holds the employer's tax based on employee's per diem expenses for travel within Sweden. |
| Per Diem Sweden Not Paid Through Payroll | Enter this non-recurring element to capture all the details about the employee's per diem expenses for travel within Sweden that are not paid through payroll. |
| Per Diem Sweden Not Paid Through Payroll Employee | This non-recurring element holds the employer's tax based on employee's per diem expenses for travel within Sweden that is not paid through payroll. |
| Per Diem Sweden Not Paid Through Payroll Employer | This non-recurring element holds the employer's tax based on employee's per diem expenses for travel within Sweden that is not paid through payroll. |
| Per Diem Sweden Paid | This non-recurring element holds the amount that is paid to the employee for per diem expenses for travel within Sweden. |
| Retrospective Lumpsum Tax | This non-recurring element holds the value that is used to calculate tax deduction based on retrospective changes. |
| Tax | This recurring element is attached to each assignment to indicate whether it is the primary employment and to initiate the tax calculation. |
| Tax Arrears | This non-recurring indirect element feeds the Tax Arrears balance. |
| Tax Arrears Payment | Enter this non-recurring direct element to initiate the negative payment calculation for tax arrears. |
| Tax Card | This recurring element is attached to each assignment for tax information processing. |
The survey of the classification identifies:
The processing priority range, default priority, and cost type for each classification
A list of the predefined secondary classifications within each primary classification
Primary element classifications are supplied as startup data, and you cannot delete or update them as they are designed to meet legislative requirements.
| Classification | Meaning |
| Information | Information elements can be used to represent information items that are not used in payroll processing. They can also be set up to hold information for use in other elements, and to trigger the processing of other elements. |
| Absence | Absence elements can be used to hold information related to employee absences. |
| Salary in Money | Salary in money elements can be used for calculating salary, overtime payments, bonuses, and any other salary-related compensation. |
| Lumpsum | Lumpsum elements can be used for non-recurring compensation or compensation not tied to a specific time period such as severance pay. |
| Taxable Expenses | Taxable Expenses elements can be used for holding expense payments that exceed the legal limit and which are subject to tax. |
| Retrospective Payments | Retrospective Payments elements can be used for all the balances and taxes corresponding to non-recurring compensation or compensation not tied to a specific time period such as severance pay. |
| Benefits in Kind | Benefits in Kind elements can be used to calculate the monetary value of non-monetary benefits like car, lunch, and other taxable benefits. |
| Pre-Tax Deductions | Pre-Tax Deductions elements can be used to hold the employees' non-taxable earnings. |
| Employer Charges | Employer Charges elements can be used to cover charges incurred by the employer, such as employer tax. |
| Other Payments Subject to Tax | Other Payments Subject to Tax elements can be used to calculate taxable payments to employees that do not fall into any other category. |
| Statutory Deductions | Statutory Deductions elements can be used to calculate statutory deductions like tax, social security, and other similar deductions. |
| Direct Payments | Direct Payments element can be used to hold payments made directly to the employee. |
| Involuntary Deductions | Involuntary Deductions elements are for compulsory deductions, such as court orders. |
| Voluntary Deductions | Voluntary Deductions elements are for deductions that employees authorize the employer to make on their behalf. |
| External Expenses | External Expenses elements can be used hold tax-free expenses that are not processed through payroll, such as travel expenses. |
The following table shows the default processing priority and costing details for the primary classifications supplied.
| Primary Classification | Priority Range | Default Priority | Cost Type |
| Information | 0 - 15000 | 500 | Debit |
| Absence | 1001 - 2000 | 1500 | Debit |
| Salary in Money | 2001 - 3000 | 2500 | Debit |
| Lumpsum | 3001 - 4000 | 3500 | Debit |
| Benefits in Kind | 4001 - 5000 | 4500 | Debit |
| Taxable Expenses | 5001 - 6000 | 5500 | Debit |
| Other Payments Subject to Tax | 6001 - 7000 | 6500 | Debit |
| Pre-Tax Deductions | 7001 - 8000 | 7500 | Credit |
| Retro | 8001 - 9000 | 8500 | Debit |
| Statutory Deductions | 9001 - 10000 | 9500 | Credit |
| Direct Payments | 10001 - 11000 | 10500 | Debit |
| Employer Charges | 11001 - 12000 | 11500 | Debit |
| Involuntary Deductions | 12001 - 13000 | 12500 | Credit |
| Voluntary Deductions | 13001 - 14000 | 13500 | Credit |
| External Expenses | 14001 - 15000 | 14500 | Debit |
This table shows the predefined secondary classifications supplied. You cannot update or delete these predefined classifications.
An element is automatically given any default secondary classifications defined for its primary classification.
| Primary Classification | Secondary Classifications | Default |
|---|---|---|
| Information | (None) | N/A |
| Absence | (None) | N/A |
| Salary in Money | Not subject to Tax Subject to Holiday Pay Subject to Tax |
N/A |
| Lumpsum | (None) | N/A |
| Benefits in Kind | Not subject to Tax Subject to Employer Tax Subject to Tax |
N/A |
| Taxable Expenses | Subject to Employer Tax Subject to Tax |
N/A |
| Other Payments Subject to Tax | (None) | N/A |
| Pre-Tax Deductions | (None) | N/A |
| Retro | (None) | |
| Statutory Deductions | (None) | N/A |
| Direct Payments | (None) | N/A |
| Employer Charges | (None) | N/A |
| Involuntary Deductions | (None) | N/A |
| Voluntary Deductions | (None) | N/A |
| External Expenses | (None) | N/A |
Use the Element window to create an element to represent compensation and benefit types or earnings and deductions.
This procedure describes how to define elements using a Payroll responsibility (that is, a responsibility with the HR User Type profile option set to Payroll User or HR with Payroll User). If you are an HR-only user, you will not see certain fields relating to element processing information. You can just ignore the steps that apply to these fields.
Note: Depending on your localization and the types of element you want to create, you may not need to start from scratch in the Element window. Check which earnings and deductions are available in the template library in the Configuration Workbench. If these template elements do not meet your requirements, you may be able to generate earnings and deductions using Earnings and Deductions windows or the Element Design Wizard. You can use the Element window to further configure template elements and generated elements.
For the United States and Canada, see: Earnings and Other Payments Overview, Oracle HRMS Compensation and Benefits Management Guide and Deductions Overview, Oracle HRMS Compensation and Benefits Management Guide
For Mexico, see: Element Design Wizard, Oracle HRMS Compensation and Benefits Management Guide
For UAE, see: Element Design Wizard, Oracle HRMS Compensation and Benefits Management Guide
For Norway:
For each element, you must enter the End of Year codes using the list of values provided in the Further Information field.
You must set up an extra information type (EIT) element for a-melding reporting.
To enter dates, names, and a classification for the element
Set your effective date early enough to handle any historical element entries you want to make. Note that an element cannot be linked or entered until its start date.
Enter a unique:
Name
Reporting name
Start the names with a letter of the alphabet (not a number or symbol). The reporting name is a short identifier for reports and pay advices.
Enter a description for the element.
Select a Primary Classification.
This controls an element's processing priority and the balances it feeds. If you are defining a salary element for Salary Administration, you must select the classification Earnings.
To enter processing information for the element
Select the processing type. Select Recurring if an entry of this element applies in every period until the entry is ended, or Nonrecurring if an entry applies in one pay period only. The dates of the pay period are determined by the payroll to which the employee is assigned.
Note: If you are defining a salary element for salary administration, you must select the type Recurring. If you are defining a net-to-gross element you must select the type Nonrecurring.
Select a termination rule to determine how entries of the element are processed after termination of the employee:
Note: UK only: Always select Actual Termination for UK proration.
Actual Termination if you want recurring entries to close down on the date the employee leaves. For a nonrecurring element, select Actual Termination if you want the entries to close down at the end of the pay period in which the employee leaves, or on the date the assignment ends (the final process date) if this is earlier.
Final Close if you want the entries to stay open beyond the employee's leaving date so that you can continue to pay the employee.
If you are a Payroll user, you can also select:
Last Standard Process for all recurring and nonrecurring elements if you want their entries to close down on the Last Standard Process date or on the date the assignment ends (the final process date) if this is earlier. The Last Standard Process date defaults to the last day of the pay period in which the employee is terminated, but you can set it to a later period when you terminate an employee.
Select the Multiple Entries Allowed check box if you want to give an employee more than one entry of the element at the same time. If you are creating a net-to-gross element, you must select Multiple Entries Allowed.
Select the Additional Entries Allowed check box if you want to make occasional one-time entries of a recurring element (instead of, or in addition to, a normal recurring entry).
US and Canada only: The Additional Entry Allowed rule is not applicable for US and Canadian installations.
Select the Closed for Entry check box if you want to prevent any new entries being made for the element, either temporarily or permanently. This does not affect any existing entries of the element.
Important: Use this feature with caution. When you perform certain important tasks in Oracle HRMS, the application may automatically create or delete element entries. These tasks include hiring and terminating people, and updating assignments. Therefore, if you check Closed for Entry on an element, this might prevent users terminating employees and updating assignments. If there are standard links for the element, it will also prevent users hiring people who are eligible for the element.
Select the Process in Run check box if you want the element to process in payroll runs.
Select the Once Each Period check box to ensure that only the first payroll run of each period processes entries of this element.
Note: If this check box is not available for your localization, you can select a ONCE_EACH_PERIOD skip rule for the element instead.
Select the Indirect Results check box if you want the element only to accept entries from indirect formula results. Leave the check box unchecked if you want to accept entries both from indirect formula results and from manual entries in the Element Entries window.
Select the Adjustment Only check box if you want to use the element only for creating balance adjustments.
Select the Third Party Payments check box if you want to use the element only for creating third party payments.
Overwrite the default priority number in the Priority field if you want to determine the order in which the element processes within its classification range. Lower numbers process before higher ones.
If the order of processing within the element classification is not important, you can accept the default priority number, which is the midpoint of the range.
Select a formula in the Skip Rule field if you have written a skip rule formula to determine the circumstances in which the element should be processed.
UK only: If you are using different run types, select the ONCE_EACH_PERIOD skip rule for all earnings, to ensure they are not processed by each child run type.
The default currency for element entry values is the currency defined for the Business Group. You can select a different currency for the element if required.
Oracle Payroll users only: Use the Advanced tab to enter further processing information if you are defining:
An earnings type, such as a bonus, that is to be taxed separately from the normal payroll run. The element can also be paid separately.
An earnings type that requires a net-to-gross calculation. For example, this applies to bonus payments that are a fixed net amount. Oracle Payroll calculates the gross amount needed to meet the net pay.
UK: A pre-tax deduction that you want to reduce if there is insufficient pay to cover the deduction along with taxes and court orders. This requires iterative processing.
Note: The Advanced tab may not be available for some localizations.
To define an element as a separate payment
On the Advanced tab, select the Separate Payment check box.
The Process Separate box is checked automatically.
UK users: Do not select this check box. This functionality is not currently available for UK Payroll.
To define an element to process separately
On the Advanced tab, select the Process Separate check box.
To define an element for net-to-gross calculation
On the Advanced tab, select the Gross Up check box.
The Iterative Flag and Process Separate boxes are checked automatically.
Select DEFAULT_GROSSUP in the Iterative Formula field. This formula controls the iterative calculation of the pay value, adjusting an input value as necessary to get a result that is defined to be close enough to the required net payment.
Note: After saving your element, choose the Iterative Rules button to specify how to use the formula results. Also choose the Exclude Balances button to select which balances are grossed up for the element (meaning that these deductions are paid by the employer).
Optionally, enter a value in the Iterative Priority field to determine the sequence in which elements are adjusted during iterative calculations. Elements with lower iterative priority values are adjusted first.
Select the Separate Payment box if you want the payment to be made separately from the regular payment. UK Payroll, Irish Payroll: Do not select this check box.
Save your work.
To set up iterative processing for a pre-tax deduction (UK)
Check the Iterative Flag box.
Select PQP_GB_ITERATIVE_ARREARAGE in the Iterative Formula field.
Enter an Iterative Priority number in the range 1 to 1500. The element with the lowest iterative priority number is reduced first. If this deduction is reduced to zero and net pay is still insufficient to cover taxes and court orders, the element with the next lowest priority number is reduced, and so on.
Important: Iterative priority numbers must be in the reverse sequence of the processing priority numbers. This means that the element that is processed first is reduced last.
Choose Iterative Rules, and select the L_stopper rule.
Oracle Payroll Users only except Ireland. If Advance Pay by Element is enabled in your legislation, use the Advance Pay tab to:
Indicate that an element may be processed as an Advance Pay element
Establish the processing conditions for your Advance Pay element.
To define an element as an Advance Pay element
On the Advance Pay tab, check the Mark as an Advance Pay Indicator check box.
This marks the element as an Advance Pay indicator. This means that when you run the Advance Pay by Element process, it will identify this that this element can be potentially processed as an Advance Pay element according to the processing conditions that you define.
To set the processing conditions for an Advance Pay element
On the Advance Pay tab:
Check the Include as an Advance Element check box if you want to process this element as an Advance Pay element.
If you want to specify a separate Advance Pay element, select this element from the list of available elements in Use Advance Element. If you leave Use Advance Element blank and do not specify an element, then you do not select a separate advance pay element. You can still process advance payments, but all the entries are held within your current earnings element rather than reported separately in an advance pay element.
Check the Deduct Advance Amount check box if you want to show the deduction for the advance in the current payroll period. Every advance payment has a deduction associated with it to bring the overall payroll amounts back into balance. You can use this check box to control the point at which the deduction should be applied.
If you want to specify a separate Deduction element, select this element from the list of available elements in Use Deduction Element. If you leave Use Deduction Element blank and do not specify an element, then you do not create a separate deduction element. You can still process deductions for advance payments, but all the entries are held within your current earnings elements rather than reported separately in a deduction element.
Note that when you create either an Advance Pay element, or a Deductions element, you must ensure that it exists for the same period of time as the underlying earnings element, and that the input values match those on the underlying element.
Check the Process Advance Entry in Run check box if you want to include this element in a payroll run, If you do not check this box, then the element does not process in a payroll run and is reported as information in your Statement of Earnings report.
For prerequisite steps to set up continuous calculation, see: Setting Up Continuous Calculation, Oracle HRMS Payroll Processing Management Guide
To set up an element for continuous calculation
Choose the Recalculation tab and select a RetroPay element. This is an event group that defines the events that trigger proration for this element.
In some localizations, Oracle Payroll can calculate proportionate earnings amounts whenever payroll-relevant data changes during a payroll period. The Payroll Earnings and Deductions section describes the full setup steps for the relevant localizations. To enable proration for an element, choose the Proration tab.
To set up an element for proration
Choose the Proration tab and select a proration group. This is an event group that defines the events that trigger proration for this element.
Optionally, select a proration formula. Alternatively you can edit the element's payroll formula to handle proration.
Enter the Further Information field if:
Your Oracle localization team has set up additional fields for element definition
You are in the UK, and you use Oracle SSP/SMP
French Payroll
Select a group, which is the name by which this element, and the others in the group, appears as one line on the pay advice.
On the pay advice, most earnings and deductions are shown as a base, a rate, and an amount. Select the base unit if you want this displayed on the pay advice.
South African Payroll
Enter a clearance number for Statutory Information and Deduction elements, if applicable. This number appears on the tax certificate.
Kuwait Payroll
Select a deduction type for the Deductions elements. This information is used by the PIFSS report.
New Zealand Payroll:
If you want to display custom elements with the classification of Employer Charges in the Online Payslip, SOE form, and Statement of Earnings under Employer Superannuation Contribution section, select Yes in the Super Section Display field.
Choose Input Values to define input values for the element
See: Defining an Element's Input Values
Choose Balance Feeds to select balances you want this element to feed
See: Creating Balance Feeds for Individual Elements, Oracle HRMS Compensation and Benefits Management Guide
Click Balance Feed Control to add or remove secondary element classifications for this element.
Mexico only: Click this button to attach sub-classifications to your element.
See: Creating Classes of Balance Feeds, Oracle HRMS Compensation and Benefits Management Guide
Choose Frequency Rules to enter frequency rules to determine when the element should be processed.
See: Defining Frequency Rules, Oracle HRMS Compensation and Benefits Management Guide
For a net-to-gross element, choose Exclude Balances to select the deductions to be paid by the employer.
For a net-to-gross element, or any other element that is processed iteratively, choose Iterative Rules to specify how to use the Iterative Formula results.
Choose the Extra Information button to enter extra attribution for the element. You can link as much attribution as you need to an element.
Note: You can only access Extra Information types if your system administrator has set them up for your responsibility.
If Payslip Modeling feature has been enabled for your localization, you can specify whether to enable the element for payslip modeling. If you select No, the elements will not be available for the users during payslip modeling process.
If Payslip Modeler has been enabled, then you can specify whether to enable the element for payslip modeling. If you select No, the element will not be available for the users during payslip modeling process.
To enable an element to be available for payslip modeling, query the element and select Yes in the Enable Simulation field in the Element Extra Information window. You can select input values of this element which are to be made available for simulation. Only user enterable input values are available for Payslip modeling. Ensure to select all mandatory input values to be made available for simulation, if the element is available for simulation.
If the Multiple Entries checkbox is enabled for an element, then you cannot use this element for payslip modeling. Instead, create a copy of the base element, enter input values, attach the appropriate formulas and balances as the base element and then use this element for payslip modeling. Ensure that this new element is not used for payroll run.
Note: Please note that there is a restriction for predefined elements being used for payslip modeling. For predefined elements, if you setup the details in one business group, then these details will be accessible to other business groups. For example, for predefined element Regular Salary element, if you want to enable Input Value A for one Business Group and Input Value B for another Business group, then this is not possible. This limitation occurs for predefined elements applicable to all localizations. Therefore, if there are multiple business groups, then you must define a single structure for the predefined elements. If there are custom elements, then the custom elements are accessible only for that business group.
Additional Resources: For more information about using the payslip modeler, see the Oracle Self-Service Human Resources Deploy Self-Service Capability Guide, Payslip Modeling (UK).
To exclude the element from a run type
Choose the Usages button if you want to exclude this element from a run type, or combination of run types.
Select the run type or combination of run types from which you want to exclude this element.
Note: For Norway: You must select the Employer Contributions run type to exclude the elements.
Select the effective dates for your exclusions.
Save your work.
Use the Input Values window to define the input values for the element. You can define up to 15 input values for an element.
Depending on the type of element you have defined, Oracle HRMS may have applied one or more default input values.
North America users: All elements must have the default Jurisdiction input value.
Norway users: All elements that feed the Holiday Pay Base classification must have the Tax Municipality input value. This input value must have the HR_NO_TAX_MUNICIPALITY valueset attached to it.
Payroll users: If you are creating balance feeds for individual elements, ensure you define an input value of the same unit of measure as the balance. Money units must be the same currency.
You can add new input values to a saved element only if you have not entered the element for any employees. To add an input value, you must set your effective date to the element's start date.
To define input values
Set your effective date early enough to handle any historical element entries you want to make.
Enter or query the element in the Element or Element Link window and choose the Input Values button.
Enter the name of the first input value. Remember that if you want to define a pay value to hold run results, you must name it Pay Value.
Select the unit type of your input value (money, hours, character, date, number, or time). A Pay Value must have the unit type Money if the element is in a Payments type classification.
You can enter numbers in the Sequence field to change the order in which the input values appear in the Entry Values window.
Check the Required check box if all entries of the element must have a value for this input.
Note: When you have saved an input value, you cannot change it to be Required. If you have saved it as Not Required by mistake (or you have generated an element that has an input value you want to make required), delete the input value and re-enter it with the correct values. If you are re-entering a generated input value, be careful to enter exactly the same name. You cannot delete the input value if you have made any entries of the element for employees.
Check the User Enterable check box if users can enter a value for this input. Uncheck it if you want to ensure that the default value is entered for all employees.
Check the Database Item check box if you want the value to be available to formulas or QuickPaint inquiries.
Database Items are simple identifiers that the system uses to find specific items of information in the human resources database. Any spaces in the input value name are converted to underscores in the Database Item name.
If you enter defaults at the element link level, these override the defaults at element level. If you update an element-level default, remember to check the values on the element links too.
To enter a default for an input value
Enter the value in the Default field.
If you want existing entries to be updated whenever the default is changed, check the Hot Default check box. The input value must be required if you want to use this option.
A hot default appears in the Entry Values window in quotation marks.
Important: If a user overrides a hot default in the Entry Values window, subsequent changes to the default will not affect the entry. For this reason, you may prefer to use BEE to change defaults for large groups of employees, rather than the hot default feature.
To enter validation for an input value
Do one of the following:
Select Warning or Error to determine whether the system warns users that an entry is invalid or prevents them from saving an invalid entry. You cannot select a value if you chose a Lookup because a user cannot enter an invalid value for an input value validated by lookup.
Use the Element Link window to define groups of assignments that are eligible for an element.
Note: When you define a link for a benefit or for an entitlement item in a collective agreement, do not select any eligibility criteria. Instead use participation eligibility profiles to restrict eligibility for the benefit or entitlement item.
Note: When querying data the Element Link window returns values for Payroll, Location and Position and Organizations, irrespective of the security profile restrictions set, enabling you to view the links already created. You cannot create links for data outside your security profile.
To define an element link
Set your effective date to the date you want the eligibility criteria to come into effect.
In the Element Name field, select the Element for which you are defining a link.
Check the Standard check box if you want all employees who are made eligible by the link to receive the element automatically.
You can only create a standard link if the element is recurring and multiple entries are not allowed by the element definition.
In the Eligibility Criteria region, select the assignment components that constitute this eligibility rule. If you want to link to all employees, do not enter any eligibility criteria.
You can link to all payrolls or to a specific payroll. Do one of the following:
Leave the Payroll field blank and check the Link to all Payrolls check box if you want employees assigned to any payroll to be eligible. This rule excludes employees who are not assigned to a payroll.
Select the name of a specific payroll if you want only employees on that payroll to be eligible for the element. Do not check the Link to all Payrolls check box.
Leave both fields blank if assignment to a payroll is irrelevant to eligibility for the element.
To enter costing information for the link
Select the Costable Type. The default is Not Costed, meaning that the system maintains no costing information for the element.
To allow entry of costing information at all levels, including the assignment and element entry levels, select Costed This is the appropriate selection for most elements representing earnings types.
If you do not need to cost the element at organization and assignment levels, select Fixed Costed. This is appropriate for some deductions, which are irrelevant to labor distribution analyses.
If you want to distribute overhead costs (such as employer contributions to a pension plan) over other elements, select Distributed.Then select a Distribution Set.
Note: Some element classifications for your legislation may be predefined as Not Costed and you cannot override this.
Check the Transfer to GL check box if the payroll run results from this link should be transferred to the general ledger.
Use the Costing field to select a GL account code and, if present, account codes of labor distribution or other systems in which to collect the run results of this element. Then use the Balancing field to select the GL account that balances this one.
For deductions elements:
Select the code for the GL account to credit in the Costing field, and the code for the account to debit in the Balancing field.
For elements in all other classifications:
Select the code for the GL account code to debit in the Costing field, and the code for the account to credit in the Balancing field.
Note: Depending on your set up of the Cost Allocation flexfield, the Balancing field may not be enabled.
You can use a batch process to create multiple links more efficiently than creating each link individually.
To create element links in a batch operation
Check the Create in Batch Mode check box to specify that you want to defer creation of this element link until later when you run the Generate Element Links process. Alternatively, leave the box unchecked if you want to create this element link immediately.
View the Link Status to confirm the status of your link:
Unprocessed - you have selected this element link for creation as part of a batch, but the Generate Element Links process has not started yet.
Processing - the Generate Element Links process is now attempting to create this link.
Complete - the Generate Element Links process has completed, and you have successfully created this element link.
Incomplete - the Generate Element Links process has completed, but this element link was not included in the processing and you have not yet created the element link. Correct the link definition before rerunning the Generate Element Links process.
Error - the Generate Element Links process failed to complete, and you have not yet created the element link. Correct the link definition before rerunning the Generate Element Links process.
Run the Generate Element Links process to complete the creation of those links that you selected for batch processing.
See Generating Element Links, Oracle HRMS Compensation and Benefits Management Guide
To enter qualifying conditions for the link
Go to the Qualifying Conditions region. Here you can add or change age or length of service requirements for this particular eligibility rule.
The system checks these conditions when you make an entry of the element. If the employee does not meet the qualifying conditions, you receive a warning.
To adjust input values for the link
Save your link definition and choose the Input Values button to display the Link Input Values window.
Use this window to:
Enter a new default or change one entered at the element level
Check the Costed box to maintain costing information for an input value.
Change the maximum, minimum or both for an input value. Logically, the new values should be within the range you defined for the element as a whole. However the system does not enforce this.
You enter compensation and basic benefits for employee assignments in the Element Entries window. If employees are assigned to a salary basis, you enter their salaries in the Salary page.
You can use the Element Entries window to make entries or to query existing entries. Use the Period field, Classification field, and Processing Types option buttons to restrict the entries you see when making inquiries.
Several Oracle HRMS features, such as Absence Management, RetroPay, and Salary Administration, create element entries automatically. You cannot update these element entries on the Element Entries window. You must update the source record (such as the absence or salary record) to change the element entry.
The Processed check box shows if Oracle Payroll has processed the entry in the current pay period. Notice that you can change an entry that has been processed. This enables you to correct entries for retropay processing. Changing the entry does not alter the payroll run results so you can consult these for a complete record of payroll processing and payments.
See: Setting Up RetroPay
Note: Your system administrator might have restricted the elements you can enter in this window by element set, classification or processing type.
To enter an element for an employee assignment
If necessary, change your effective date to:
The correct start date for a recurring element entry
Any date in the correct pay period for a nonrecurring element entry
If the pay period is closed at your effective date, you cannot enter any nonrecurring elements that process in payroll runs. If a current or future pay period is closed, you cannot enter any recurring elements that process in payroll runs.
To reduce the list of elements to choose from, select a classification, a processing type, or both in the first region.
In the Element Name field, select an element.
Note: Elements this employee is eligible for by means of a standard link appear automatically.
The system displays a warning message if the employee fails to meet any qualifying conditions of age or length of service.
If the Costing field is enterable, you can enter cost codes, for example to indicate the cost center the employee's time should be charged to.
You can select a reason for an element entry you make or update. As part of your system setup, you can enter valid reasons for the Lookup Type ELE_ENTRY_REASON.
You can check the Override check box to create an entry that overrides all other entries of this element in the current period. You cannot create an override entry if one already exists, or if any of the entries of this element have been adjusted.
If you want to create a one-time entry of a recurring element, check the Additional check box.
An Additional entry is valid only for the current pay period, shown in the Effective Dates fields.
You can only check Additional if:
The element definition allows additional entries, and
An additional entry does not already exist for the assignment in this period, and
The employee is assigned to a payroll
There is a payroll period defined at your effective date
Choose the Entry Values button to open the Entry Values window.
Enter values in the Entry Values fields. Notice that:
Entry to some fields may not be permitted.
Some fields may be required.
Some fields may have a list of values; others may be validated as you leave the field. You will receive a message if your entry is not a valid value.
Some fields may contain default values. If the default value is in quotation marks, it is a "hot default".
Important: You should consider carefully before overriding a hot default. If you override it, then any subsequent changes to the default value on the element or element link definition will notaffect the element entry. However, you can clear your entry if you want the default value to come back into effect.
For Kuwait users only: To enter information about the elements with deduction classification, click on Further Entry Information and enter the following:
Reference number, which is the sequence number used while setting up the deduction type
Authority for the deduction account
Select the type of deduction
Total deduction amount for the element
Start and end date for the deduction. The deduction process depends on the start and end dates that you select for the element. Oracle HRMS uses these dates for reporting purpose.
For Mexico users only: To report disability subsidy payments for applicable employees in the CFDI payslip, enter the disability information for Earnings and Supplemental Earnings elements. For these elements, click Further Entry Information and select an appropriate value in the Disability Registration ID field.
See Setting Up Information for the CFDI Payroll Payslip XML Interface, Oracle HRMS Payroll Processing Management Guide (Mexico) and Running the CFDI Payroll Payslip XML Extract, Oracle HRMS Payroll Processing Management Guide (Mexico) for more information.
For a non-recurring element, optionally select a date within the current payroll period in the Date Earned field. The entry will not be processed until this date (that is, the Date Earned of the Payroll Run must be on or after this date).
To enter information about a third party recipient of a payment resulting from a deduction element, use the Payee Details field. Select the name of the third party payment method set up for this payment.
To determine the processing sequence of multiple entries in the payroll run, enter a subpriority number in the Processing Priority field. Lower priority numbers process first.
Note: The Processing Priority field is not available to HR-only users. For more information on user types and the HR:User Type profile option, see: User Profiles, Oracle HRMS Configuring, Reporting, and System Administration Guide.
Save your work.
Oracle HRMS enables you to calculate proportionate earnings amounts whenever payroll-relevant data is changed during a payroll period, for example, if an employee joins or leaves the company during a payroll period or if an employee's pay grade changes during a payroll period. Oracle HRMS performs a proration calculation to ensure that the employees' earnings are calculated correctly after taking account of these changes.
If you want to prorate an earnings element, such as basic salary, assign an event group to it. An event group is a collection of proration points that share similar characteristics. You can create an event group to group together all proration points that affect an employee's salary, for example. This event group could contain proration points such as salary increases, assignment changes, and pay rate changes.
You then process the element using a formula that handles proration. You can either use a payroll formula that handles proration, or create a separate proration formula that runs after the main payroll formula only in payroll periods when a proration event occurs.
See: Sample Payroll Formulas Enabled for Proration (UK), Oracle HRMS FastFormula User Guide, Sample Proration Formula, Oracle HRMS FastFormula User Guide, and Writing Proration Formulas, Oracle HRMS FastFormula User Guide
When you define the event group, you select the events that will activate proration calculation, such as:
An employee joining or leaving the enterprise
Changes to pay grades or grade rates
Changes to pay scales and progression points
Changes to hourly or annual pay rates
Changes to working hours
Changes to allowances or deductions
Note: The proration unit can be periods, days, or hours. Proration can be applied to a monetary, time-based, or numeric amount.
You can define a bonus or other payment, which is a fixed net amount, using Net-to-Gross Processing. Oracle Payroll calculates the gross amount needed to meet the net pay. You define which taxes and other deductions the employer is willing to pay by selecting the balances that can be used in the net-to-gross processing.
The following formulas are used in net-to-gross processing:
This iterative formula calculates the amount that the employer must pay in addition to the desired net amount.
This formula adds the additional amount returned by the iterative formula to the desired net amount to return the payment amount. Create a formula result rule to return this payment amount as a direct result to the element's pay value.
Net-to-gross elements always process separately, after you process the main payroll.
For details of how to set up a net-to-gross element, see Setting Up Elements for Net-to-Gross Processing
When you define the element for net-to-gross processing, you select which balances to exclude from the gross-up calculations. The employer pays all deductions except the ones you exclude.
The formulas for net-to-gross processing do the following:
The iterative formula takes as input the desired net amount (Amount input value), the amount by which net can diverge from the desired amount (To Within input value), and the method of calculation (Method input value).
In the first run the formula sets the lower gross limit to the desired net amount, and the higher gross limit to twice the desired amount. Then it runs a function to provide the first guess of the gross. The formula returns three values--low gross, high gross, and additional amount--to the element's input values.
The element's payroll formula runs (CALC_GROSSUP_PAY_VALUE). It adds the additional amount to the desired amount to create the gross and returns this value to the element's pay value for the payroll run to process.
In the next iteration, the iterative formula compares the additional amount to the total value of the balances that are available for grossup for this element entry. The additional amount must not differ from this balance total by more than the amount you specified in To Within field.
If the additional amount equals the balance total, then the iterative processing ends.
If the additional amount is above or below the balance total by an acceptable margin, then the processing ends and the formula returns the remainder (additional amount - balance) to the element's Remainder input value.
Otherwise, the formula runs the function to generate a better estimate for gross, using the remainder to determine by how much to change the guess. The formula checks the results in another iteration.
Follow these steps if you want to set up your system for proration or retro-notification.
To complete basic setup for proration or retro-notification
In the Table Event Updates window, ensure that the events you want to use are already included in the required tables. Enter the table name. The lower half of the screen displays the fields that trigger proration or retro-notification if their values are changed.
If the table has already been defined but the required event is missing, create either an Update, Delete, or Insert event and enter the table row or column to which the event refers. You can only enter a column name if you are creating an Update event. Select the change type defined by the event.
Note: The Table Event Update window is not available in all localizations.
See: Making Table Event Updates, Oracle HRMS Payroll Processing Management Guide
If the events you require have not been defined in the Table Event Update window, set up the dynamic triggers for proration or retro-notification in the Dynamic Trigger Generation window. The triggers you need depend on the method you use to compensate your employees. For example, the tables required for compensation using Salary Administration are different from those required for compensation using pay grades. The tables you are likely to use are:
PER_ALL_ASSIGNMENTS_F
PER_ALL_PEOPLE_F
PAY_ELEMENT_ENTRIES_F
PAY_ELEMENT_ENTRY_VALUES_F
PER_SPINAL_POINT_PLACEMENTS_F
PER_GRADE_RULES_F
See: Defining Dynamic Triggers, Oracle HRMS Payroll Processing Management Guide
Note: French users: Ensure you enable the dynamic triggers for PAY_ELEMENT_ENTRIES_F and PER_ALL_ASSIGNMENTS_F.
Create an event group for your proration or retro-notification events. You must create the event groups before you can create your elements.
See: Defining Event Groups, Oracle HRMS Compensation and Benefits Management Guide
Select the Incident Register functional area in the Functional Area Maintenance window. Make sure that your triggers are included in this functional area. If your triggers are not included, insert them.
You must also activate the triggers according to legislation or business group. For more information, see: Grouping Dynamic Triggers into Legislative Functional Areas, Oracle HRMS Payroll Processing Management Guide
Setup for retro-notification should now be complete, meaning you can proceed to running the appropriate report. However, if you are setting up proration continue with the next steps.
See: Running the Retro-Notifications Report, Oracle HRMS Payroll Processing Management Guide
To set up the elements for proration
Create your proration element. US and Mexico users: Initiate the earnings type or deduction, then query the generated element in the Element window to add a proration group and, optionally, a proration formula.
Make sure that you select a proration group for each element
Select a proration formula if you are using a separate proration formula to handle proration events (rather than enabling your payroll formula to handle proration)
Select Actual Termination as the termination processing rule
Define the input values for the element. For example, if you were using the sample payroll formulas that are enabled for proration, you would create the following input values:
Amount for a salary management element
Date Worked for a spinal point/pay scale element
Annual Deduction for a deduction or allowance
Link the element to a specific payroll or payrolls. If you want the element to be used automatically each time the payroll is assigned, select the Standard check box. If you do not select this check box, you must enter the element for each assignment.
To create the formula
Check that the database items to be used in your formula are available. If the required database items are not available, create them.
Create the proration formula or write a payroll formula that is enabled for proration.
To create a proration formula, see: Writing Proration Formulas, Oracle HRMS FastFormula User Guide
UK users: For examples of payroll formulas enabled for proration, see: Sample Payroll Formulas Enabled for Proration, Oracle HRMS FastFormula User Guide
For more information on writing formulas, see: Writing or Editing a Formula, Oracle HRMS FastFormula User Guide and Writing Payroll Formulas for Elements, Oracle HRMS FastFormula User Guide
Link the formula to your element in the Formula Result Rules window.
See: Defining Formula Processing and Result Rules, Oracle HRMS FastFormula User Guide
Attach the element to the salary basis if the salary is relevant for proration. Select the input value you created (such as Amount) in the Input Value Name field of the Salary Basis window.
See: Defining a Salary Basis, Oracle HRMS Compensation and Benefits Management Guide
Oracle HRMS supports the capture of third party payment details to enable the employer to make grouped payments. Grouped payments are deductions, made for a set of employees, that are grouped together and paid to a specific third party. Grouped payment enables you to process all similar deductions as a batch instead of processing employee-wise deduction.
Create an organizational payment method using the payment type SE Third Party Payment. See: Defining a Payment Method
Create your third-party organizations with the Payee organization classification.
Enter the third-party payment details for each payee organization. See: Entering Third Party Information
Oracle HRMS supports the capture of the relevant court order deduction that the employer must pay to the correct Enforcement Office. Reserved amount is the minimum amount an employee must receive after deductions.
Create your enforcement offices.
Link the Court Order element to your payroll.
Enter the Court Order Information element for the employee's primary assignment only. Then, enter the Court Order element for all the assignments of the particular employee.
Note: The application enables the payment of the reserved amount set by the Enforcement Office for the employee.
Oracle HRMS captures travel expense–related information to meet the tax reporting requirements. The employer can process these expenses directly from payroll or upload the information from third party systems.
Note: If you process the travel expenses through a third party system, you can upload the information into the available predefined elements with help from the payroll implementation team.
Create the necessary legal employers and local units.
Review the predefined travel expenses elements. You can use these as supplied or define your own elements with the primary classification as Direct Payments.
See: Predefined Elements
You must select the Termination as Final Close for all elements that you create.
See: Defining an Element
Link the elements to your payroll.
Enter the elements for the employee's assignment.
Oracle HRMS supports the calculation of the monetary value of the following non-monetary benefits in kind:
Car Benefit
Fuel Benefit
Food Benefit
Accommodation Benefit
Create the necessary legal employers and local units.
Define your Benefit in Kind elements, selecting the primary classification Benefits in Kind. You must exclude all benefits in kind elements from the Pay Separately and Process Alone run types and you should define these elements with Termination as Final Close.
See: Defining an Element
Select the benefit type through the Further Element Information descriptive flexfield, if you are entering information for other employee benefits. You use this information for income reporting purposes.
Link the elements to your payroll.
Enter the elements for each employee's assignment.
Typically, you use net-to-gross calculations in two cases:
You need to know the gross cost effect of a planned salary or a payment increase.
You want to give a reward or bonus to the employee, free of any employee charges. Since the tax administration considers the payment as taxable income, you need to know how much to pay as gross to get a zero-cost value for the employee.
See: Net-to-Gross Processing of Earnings
Review the predefined net-to-gross elements. You can use these as supplied or define your iterative elements for the net-to-gross calculation in the Element window with the primary classification as Salary in Money.
See: Predefined Elements
See: Defining an Element
See: Setting Up Elements for Net-to-Gross Processing
Important: You must select the Termination as Final Close for all elements that you create.
Select the iterative formula as SE_CALC_GROSSUP.
Click the Usages button to exclude any elements from the net-to-gross calculation.
Note: You must exclude the Benefits in Kind elements from the run type Process Alone.
Note: The NetPay balance will reflect all earnings elements and all statutory deductions during net-to-gross calculation. This balance considers neither voluntary nor involuntary deductions.
Follow these steps to set up elements for net-to-gross processing.
To set up elements for net-to-gross process
Define the elements, making sure you select the following rules:
On the Standard tab of the Element window:
Non-recurring
Final close for the termination rule
Multiple entries allowed
Skip rule of ONCE EACH PERIOD
Mexico only: Skip rules are not enabled by default.
On the Advanced tab of the Element window:
Check the Gross Up check box
Select DEFAULT_GROSSUP in the Iterative Formula field
Choose the Input Values button to define the input values for these elements, as follows:
| Input Value Name | Purpose of Entry | Checkbox: Required | Checkbox: User Enterable | Checkbox: Database Item |
|---|---|---|---|---|
| Pay Value | Oracle Payroll returns the gross pay to this input value when it has completed the net-to-gross calculations. | No | Yes | Yes |
| Amount | Gives iterative formula the desired net pay. | Yes | Yes | No |
| Low Gross | Used by the iterative formula to hold the lower gross pay guess, to feed into the next iteration of the formula. | No | No | No |
| High Gross | Used by the iterative formula to hold the higher gross pay guess, to feed into the next iteration of the formula. | No | No | No |
| Remainder | The amount by which the additional pay to be paid by the employer (gross minus desired net) differs from the total of the balances that are eligible for grossup processing. Returned by the iterative formula. | No | No | No |
| To Within | The amount by which actual net can differ from desired net after normal processing. Must not be zero but can be a nominal amount such as 0.01. | Yes | Yes | No |
| Method | The method of iterative calculation: binary or interpolation. This determines which function the iterative formula calls. Use the lookup type ITERATIVE_METHOD and select the default INTERPOLATION, since this is usually the more efficient method. | Yes | Yes | No |
| Additional Amount | The amount to add to desired net to calculate gross pay. Returned by the iterative formula. | No | No | No |
Click Balance Feeds to confirm which balances feed your net-to-gross element.
See: Creating Balance Feeds for Individual Elements, Oracle HRMS Compensation and Benefits Management Guide
Click Balance Feeds Control to modify balance feeds that are not correct.
See: Creating Classes of Balance Feeds, Oracle HRMS Compensation and Benefits Management Guide
Click Iterative Rules to set up the processing rules for the iterative formula.
See: Defining Iterative Processing Rules, Oracle HRMS Compensation and Benefits Management Guide UK
Click Exclude Balances to select the deductions to be paid by the employer.
See: Excluding Balances From an Element's Grossup Calculation, Oracle HRMS Compensation and Benefits Management Guide UK
Define the formula result rules for your elements:
Select the CALC_GROSSUP_PAY_VALUE formula for the Standard processing rule.
Create a formula result rule to feed the PAYMENT_AMOUNT result as a direct result to the element's pay value.
See: Defining Formula Processing and Result Rules, Oracle HRMS Compensation and Benefits Management Guide
Define element links for your elements.
Oracle HRMS provides a convenient way to maintain information about the various absence types your enterprise recognizes. To facilitate reporting and analysis of employee absences, you can distinguish between absence types and absence categories. An absence category is a group of related absence types.
Some absence categories may be predefined for your legislation. The table below contains examples of absence categories and types, for illustration purposes only. You can extend the list of predefined categories and define your own absence types, as required.
Example Absence Categories and Types:
| Absence Category | Absence Type |
|---|---|
| Medical Leave | Illness or Injury |
| Work-related Injury | |
| Work-related Illness | |
| Medical Appointment | |
| Family Leave | Paid Maternity/Paternity |
| Unpaid Maternity/Paternity | |
| Dependent Care | |
| Personal Leave | Compassionate Leave |
| Personal Business | |
| Professional Leave | Certification Classes |
| Meeting Attendance |
Also, to assist with absence reporting and analysis, you can provide reasons to select from when recording employees' time taken for an absence type. For example, if you need information to analyze the particular family-related responsibilities that cause employees to miss work, you can define reasons for absence types as follows:
Example Absence Category, Types and Reasons:
| Absence Category | Absence Type | Absence Reasons |
|---|---|---|
| Family Leave | Paid Maternity/Paternity | Birth of a child |
| Adoption of a child | ||
| Dependent Care | Child Care | |
| Elder Care | ||
| Disabled Care |
Setting up each absence type is essentially a two-step process. One step involves defining the type, that is, entering its name, and optionally selecting a category and reasons for it. The other step involves defining an element to associate with the type. This element serves two important purposes:
It provides a way to maintain a running total of time taken for the absence type. The Absence Detail window shows the running total of absences with an end date before the effective date, and with an absence duration on record. Each absence can add to, or subtract from, the running total, depending on how you define the absence type.
It provides a way to restrict employee eligibility for the absence type. The links you build for the element establish which employees are eligible to use the type.
For example, if the absence type compassionate leave is available only to full time employees, you link its element to the assignment category Full Time.
To hold a single running total of time taken for two or more absence types, you associate all the types with the same absence element. For example, your absence category Personal Leave may include two absence types you need for certain reporting purposes, Compassionate Leave and Personal Business. However, you require just one running total to be kept of employees' time taken for both types of personal leave. In this case you simply associate both absence types with the same absence element.
Note: If you want to use absence types without recording accrued totals or eligibility rules, you can define the type with no associated element.
You can associate each absence type with a recurring or nonrecurring absence element. Each element has an input value with either hours or days as its unit of measure.
Nonrecurring element entries are valid for one payroll period. When you enter an absence of a type associated with a nonrecurring element, the application creates an element entry for the period in which the absence start date falls. For example, if you enter an absence that starts on 4 May for someone on a monthly payroll, the entry is dated 01 May to 31 May.
The entry is only created when you enter the absence end date, and you must enter the absence duration at the same time. The duration can be defaulted if you set up an absence duration formula. The full value of the absence duration is recorded in the absence element entry, even if the end date falls outside of the payroll period.
Important: This option is only available if you use Oracle Payroll and the Proration functionality is enabled in your localization.
UK Users: If you use the Statutory Absence Payments feature you must continue to use nonrecurring elements to record long term sick leave.
Use this approach if you want to begin processing absences before end dates are recorded. You do not enter absence duration on the recurring element entry. Instead, you use a payroll formula to calculate the absence duration to be processed in each payroll period. Use the absence duration formula to calculate the duration displayed on the Absence Detail window. This value is deducted from the current PTO accrual when you enter an end date for an absence type that is associated with a PTO accrual plan.
Recurring element entries start on the absence start date and end on the absence end date (if there is an end date). If the absence ends in the middle of a payroll period, the payroll run detects and processes the absence using the proration functionality.
When you define an absence type, you specify whether the application should maintain an increasing balance, a decreasing balance, or no balance of time off. The balance is a running total of the hours or days an employee has taken for the absence type, as recorded in the Duration field.
As you would expect, an increasing balance for an absence type starts with no time entered, and increases as you enter employees' hours or days absent. For example, if the absence type Compassionate Leave has an increasing balance, the balance starts from zero for each employee and increases by the number of hours entered for each absence of this type.
Increasing balances are appropriate for most absence types. For absence types for which your enterprise sets a maximum time allowed, the system issues a message when an entry of time absent exceeds this maximum, or Oracle Alert can notify you when an employee reaches the maximum time or takes excess time.
See: Oracle Alert User's Guide
When defining an absence type for a PTO accrual plan, you give it an increasing balance that shows the employee's accrued time taken. When you record an absence using the Absence Detail window, you can see the amount of accrued time a plan participant has available for use as vacation or sick leave.
If your enterprise sets a maximum time allowed for an absence type, you have the option of setting up a decreasing balance for this type, instead of an increasing balance. (If the absence type is used for a PTO accrual plan, it is simpler to use an increasing balance and an accrual formula that records an up-front accrual amount.)
For example, suppose your enterprise allows certain employees 32 hours leave per year for professional development. The Professional Leave absence type can have a decreasing balance, and an initial entry of 32 hours.
If you record an employee absence of 4 hours for this absence type, the decreasing balance shows 28 hours still available to be taken.
Decreasing absence balances require more maintenance than increasing balances. They need a prorated initial balance entry for all eligible new hires throughout the year, and require resetting each year for all eligible employees.
Notice that an absence type cannot have both a decreasing and an increasing balance; it has one or the other.
You can initialize or adjust an absence balance using the Element Entries window, or the Element Entry API. You can also initialize a decreasing balance by entering a negative value using BEE. For example, if you enter -16 hours using BEE, a decreasing balance starts at 16 hours. However, be aware that using BEE creates an absence record that will show on employees' absence history.
You can define an absence element as an Information element or an Earnings element.
If you define an Information absence element, you can use a recurring Earnings element to manage the calculation and payment of vacation and sick pay. When you define the absence element, you check the Database Item box for the input value that holds the absence balance. Entries to this input value then become database items that formulas for payroll calculations can access.
US Users: You will typically set up your absence elements in the Information classification for employees who do not submit timecards (Timecard Required = No on the Statutory Information tab of the Assignment window). If you are using the seeded Regular Salary or Regular Wages elements, the payroll run creates indirect results for the seeded Vacation Pay or Sick Pay elements when it finds absence entries in the Vacation or Sickness categories. These elements appear on the Statement of Earnings, but the Information elements do not. You do not need to set up any additional absence Earnings elements for these employees.
Other localizations: Typically, you define an Earnings element to have a skip rule that triggers processing when it finds an entry for the absence element. The element's payroll formula uses the database item for the entry value so that it automatically gets the sum of all the entries in the pay period. Then, using the salary database item to get the salary or hourly rate, it calculates the total absence pay for the period. You can also use the formula to reduce regular earnings for the period so employees do not get paid twice.
The advantage of this approach is that it simplifies the processing of absence payments into one calculation.
Select the Earnings classification for absence elements if you want to process absences individually in each payroll period. You can use these elements with Oracle Time and Labor. This approach creates a one-line entry on the statement of earnings for each absence type. Typically, you would create nonrecurring Sick and Vacation Pay earnings elements. You can also create different absence elements for each rate or multiple of pay if the element must appear on the statement of earnings as a different line item.
US Users: For employees who do submit timecards (making entries in BEE to the Time Entry Wages element), you can create your absence elements as Earnings. This also applies if you do not use the seeded Regular Salary and Regular Wages elements, and you want your absence payment to show on the Statement of Earnings. Use the Earnings window to initiate the element. Select the Category Regular and check the Reduce Regular box.
Oracle Payroll users: If you enter or update an absence retrospectively, or you delete an absence that started in the past, these changes are listed in the Retro Notification report the next time you run this report. This enables you to use RetroPay to correct any payroll processing.
Use the following steps to set up absence management.
If you want to associate recurring elements with absence types, you must set up proration and retro notifications. This ensures that absences that end in the middle of a payroll period are detected and processed by the payroll run, and that retrospective changes to absences are recorded in the Retro Notifications report.
Note: Proration is available to Oracle Payroll users in selected localizations only.
To set up proration and retro notifications, you must:
Find all the dynamically generated triggers for the table PAY_ELEMENT_ENTRIES_F in the Dynamic Trigger Definition window. (You must deselect the Insert triggering action so that all the triggers are returned by the Find.) Make sure the Generated and Enabled check boxes are checked for all the continuous calculation triggers.
Query the Incident Register functional area in the Functional Area Maintenance window, and enter the business groups for which you want to enable proration on the Business Group tab. Optionally, you can further secure the proration functionality by selecting payrolls on the Payroll tab.
Use the Table Event Group window to group the two events that you need to detect to prorate absences - datetracked updates to absence start date and absence end date. Select Proration for the event group type, and Payroll Period for the proration period. In the Datetracked Events region, select DateTrack Update as the update type, PAY_ELEMENT_ENTRIES_F as the table, and EFFECTIVE_START_DATE and EFFECTIVE_END_DATE as the columns.
Use the Table Event Group window to group the datetracked events on the PAY_ELEMENT_ENTRIES_F table you want to track in the Retro Notifications report. The event group type is Retro.
Define an absence element, with at least one input value, for each absence type. Link this element to define who is eligible.
See: Defining and Linking an Absence Element, Oracle HRMS Compensation and Benefits Management Guide
Note: Omit this step if you are setting up an absence type for which you do not need to maintain a running total of time taken or remaining, and you do not need eligibility rules.
US and Canada Payroll only: If you want to process the absence element in the payroll run, generate it using the Earnings window.
Mexico only: If you want to process the absence element in the payroll run, generate it using the Element Design Wizard.
Define categories of absence types as values for the Lookup Type ABSENCE_CATEGORY, and your absence reasons as values for the Lookup Type ABSENCE_REASON. In some legislations there are predefined categories and reasons.
You can select the same reason for different absence types.
See: Adding Lookup Types and Values, Oracle HRMS Configuring, Reporting, and System Administration Guide
Define each absence type, and associate it with an absence element.
See: Defining an Absence Type, Oracle HRMS Compensation and Benefits Management Guide
Note: To keep a single record of employees' time taken for two or more different absence types, you can associate the same element with several types.
For an absence type with a decreasing balance, use BEE or the Absence Detail window to initialize the absence balances for employees eligible for the type.
If you want to make batch entries, see Making Batch Element Entries Using BEE, Oracle HRMS Configuring, Reporting, and System Administration Guide.
If you defined a recurring element, create a payroll formula that handles proration to process the element and calculate the appropriate absence duration in each pay period (taking into account the number of days or hours in a month, working and shift patterns, public holidays, and so on).
Sample Proration Formulas, Oracle HRMS FastFormula User Guide
If you want to set up the application to calculate the duration of an absence automatically, you have two options:
Set the HR: Schedule Based Absence Calculation profile option to Yes, if you want the application to use the worker's schedule and calendar events from their primary assignment to calculate absence durations. To use this option, you must first define schedules and calendar events that are relevant to your enterprise and assign them to various levels in your work structures.
See: Setting Up Availability , Oracle HRMS Workforce Sourcing, Deployment, and Talent Management Guide
To calculate absence duration from the absence start and end dates without using the schedules and calendar events information of an employee, create a basic formula. If you want the absence duration calculation to update automatically each time you change the absence dates, you must set the profile option HR: Absence Duration Auto Overwrite to Yes.
See: Writing Formulas to Calculate Absence Duration, Oracle HRMS FastFormula User Guide
Oracle HRMS enables you to record various holiday absences for employees and administer holiday pay and public holiday pay. You can process the holiday pay that the employees accrue based on the different kinds of earnings and remuneration they earn in the holiday accrual year. Oracle HRMS provides you predefined lookups, elements, and fast formulas for processing an employee's holiday pay. Before you can process the holiday pay, you define the holiday allowance percentage for the employee.
Note: You use the Further Period Details field in the Period dates window to define the percentage for each period.
To set up holiday pay
Assign a work schedule to the employee.
See: Assigning a Schedule to a Worker, Oracle HRMS Workforce Sourcing, Deployment, and Talent Management Guide
Link the Holiday Accrual and Holiday Entitlement Information elements to the required payroll.
Note: You can override the accrual details at the legal employer level by defining the details at the assignment level.
In the Element Entries window, select the Holiday Allowance Override element to override the holiday allowance percentage you defined for the employee when you created the payroll.
See: Making Manual Element Entries, Oracle HRMS Compensation and Benefits Management Guide
Run the payroll.
Oracle HRMS enables you to process sick pay for your employees according to the statutory requirements. Using the sick pay processing functionality, you can provide details of the absence, work incident that caused the absence, and benefits. For processing the sick pay, you must complete the following steps:
To set up sick pay
Define the sickness absence type using the Absence Type window. Select Sickness as the category for each type of sickness absence.
See: Defining an Absence Type, Oracle Compensation and Benefits Management Guide
Enter the sickness absence details you want to capture for an employee.
See: Entering Absences, Oracle Compensation and Benefits Management Guide
If you want to process an emergency payment for an employee, select Yes in the Section 28 Registration field on the Sick Pay Defaults tab.
See: Entering Additional Assignment Details (Assignment Window)
Run the payroll.