2 Understanding JD Edwards EnterpriseOne Payroll

This chapter contains the following topics:

2.1 JD Edwards EnterpriseOne Payroll System Overview

Processing payroll in-house enables the organization to eliminate costly service bureau charges and to gain complete control of payroll functions. The JD Edwards EnterpriseOne Payroll system offers simple yet complete solutions for your entire payroll processing needs. You can use this flexible system to efficiently manage the unique payroll needs of the organization, even as the business grows and requirements change.

2.2 System Integration

To streamline data entry between payroll and human resources users, you enter much payroll-related information into the JD Edwards EnterpriseOne Human Capital Management Foundation system. This system contains the central database for all of the information that human resources and payroll users typically share. For example, when a human resources clerk updates an employee's information, the employee's payroll information is also updated. A central database:

  • Eliminates redundant data entry.

  • Maintains current and accurate information across all business operations.

  • Improves communication among departments.

You use the JD Edwards EnterpriseOne Human Capital Management Foundation system to track:

  • Complete employee information.

  • Job information.

  • Pay type, deduction, benefit, and accrual (PDBA) information.

  • Time and labor information.

The JD Edwards EnterpriseOne Payroll system contains the additional functions that you need to process payroll for employees.

Both human resources and payroll users can enter information into the JD Edwards EnterpriseOne Human Capital Management Foundation system. However, to prevent unauthorized access to confidential information, you can set up system security so that users can access only the information that they need for their jobs. Typically, the system administrator sets up system security during system implementation. The system administrator can set up security for an entire form or for specific fields on a form.

This graphic displays how the JD Edwards EnterpriseOne Human Capital Management Foundation system supports human resources, benefits administration, and payroll:

Figure 2-1 JD Edwards EnterpriseOne Human Capital Management system integration

Description of Figure 2-1 follows
Description of ''Figure 2-1 JD Edwards EnterpriseOne Human Capital Management system integration''

2.3 System Features

The JD Edwards EnterpriseOne Payroll system includes many features that you can adapt to meet the unique payroll needs of the organization. The following information discusses some of the features that you can use to meet payroll processing needs.

2.3.1 Define the Payroll Environment

You can use the JD Edwards EnterpriseOne Payroll system to perform these tasks, which enable you to define the payroll environment:

  • Track information for an unlimited number of companies within the organization.

  • Keep payroll journal entries in balance when employees work in multiple companies.

  • Set up default values for commonly used information and override default values if necessary.

  • Set up master pay cycles that define the organization's pay periods and corresponding payment dates.

  • Define up to 9000 employee and employer payroll deductions, benefits, and accruals.

  • Restrict access to confidential information.

  • Process payroll in a union environment.

2.3.2 Simplify Tax Calculations

The JD Edwards EnterpriseOne Payroll system simplifies tax calculations by:

  • Identifying all valid federal, state, and local taxing entities.

  • Using the payroll tax program that integrates with the JD Edwards EnterpriseOne Payroll system.

    This program is called Quantum for Payroll Tax and is supplied by Vertex, Inc. Quantum for Payroll Tax calculates federal, state, provincial, and local taxes for employees in the United States and Canada. For employees in Australia and New Zealand, you set up payroll tax calculations in the JD Edwards EnterpriseOne Payroll system.

  • Calculating taxes for employees who work in more than one state or province during a single pay period.

  • Calculating taxes for employees who receive multiple payments during a single pay period.

  • Calculating taxes for part-time or contract employees with special taxing circumstances.

2.3.3 Provide Various Payment Options to Employees

You can set up employees to receive their payments by cash, check, automatic deposit, or a combination of these forms of payment.

2.3.4 Process Payroll Cycles Efficiently

When you process payroll cycles, you can:

  • Select the employees to include in a payroll cycle.

    You can simultaneously process multiple payroll cycles for different groups of employees.

  • Create multiple versions of selected payroll processing steps to increase system efficiency and decrease processing time.

  • Review employee payroll information and make any necessary changes before you print payments.

    You can review and, if necessary, rerun the steps in the payroll cycle.

  • Manage the sequencing of employee payments to simplify the task of distributing payments.

  • Print time entry, pay, summary, and tax reports during a payroll processing cycle.

  • Create journal entries automatically each time that you process a payroll cycle.

    When you integrate JD Edwards EnterpriseOne Payroll and JD Edwards EnterpriseOne General Accounting systems, you can automatically post the journal entries to the general ledger during the payroll cycle.

2.3.5 Review Payroll History

You can review payroll history for pay types, deductions, benefits, accruals, timecards, payments, taxes, and insurance. You can review historical information online or you can print history reports.

2.3.6 Process Payments Outside of the Payroll Cycle

You can use the interim payment feature when you need to process payments outside of the payroll cycle. Use this feature for special circumstances, such as terminations, pay advances, bonuses, gross-up payments, and advance vacation pay.

2.4 Payroll System Flow

The payroll cycle is a process that you complete every time that you need to pay employees. In addition to processing payroll cycles, you need to perform regular maintenance tasks, such as entering and updating employee information and entering timecards.

This graphic displays the relationship between regular maintenance tasks and the payroll cycle. The top line indicates the flow of the regular work processes. The circle represents a payroll cycle.

The payroll cycle:

2.4.1 Employee Maintenance

Employee maintenance requires entering and updating employee master information. Employee master information is the standard information that the JD Edwards EnterpriseOne Payroll system requires before you can pay an employee, such as the employee's tax ID number, pay rate, and tax information. You perform employee maintenance in the JD Edwards EnterpriseOne Human Capital Management Foundation system.

2.4.2 Time Entry

Time entry involves entering and processing timecards. During payroll cycle processing, the system uses time entry records to create payments for employees. For salaried employees, the system automatically generates time entry records for regular pay. You enter time entry records in the JD Edwards EnterpriseOne Human Capital Management Foundation system.

2.4.3 Pre-Payroll

Pre-payroll processing creates the workfiles that the system needs to produce payments and reports. You use pre-payroll processing to:

  • Select the employees to include in a payroll cycle.

  • Generate timecards for employees whose timecards are not entered manually.

  • Process timecards that are entered manually for the pay period.

  • Calculate gross-to-net pay for employees.

  • Calculate job step progression information.

  • Print reports that list deductions, benefits, and accruals (Dabs); taxes withheld; and any unique overrides used in the calculations.

2.4.4 Payments

Payments are the cash, checks, or advice slips that employees receive in return for their labor. You can print paychecks, automatic-deposit advice slips, and additional attachments.

2.4.5 Journal Entries

During payroll processing, the system creates journal entries that must be posted to the general ledger. If the JD Edwards EnterpriseOne Payroll system is integrated with the JD Edwards EnterpriseOne General Accounting system, you can automatically post the journal entries to the general ledger.

2.4.6 Reports

To verify that the payroll information is accurate, you can print and review reports after you process pre-payroll, print payments, or process journal entries.

2.4.7 Final Update

The final update is the last step in the payroll cycle. This step updates the payroll history tables and prepares the system for the next payroll cycle.

2.5 User Defined Codes for Payroll

Many fields throughout the JD Edwards EnterpriseOne Human Capital Management systems accept only user defined codes (UDCs). You can customize fields in the system by setting up UDCs to meet the needs of the business environment.

UDCs are stored in tables that relate to a specific system and code type. For example, 07/PY represents system 07 (Payroll) and UDC type PY (Pay Cycle Codes). UDC tables define which codes are valid for the individual fields in the system. If you enter a code that is not valid for a field, the system displays an error message. For example, in the Pay Cycle field, you can enter only those codes that are included in UDC table 07/PY.

You can access all of the UDC tables through a single UDC form. After you select a UDC form from a menu, you can change the system code and UDC type to access another UDC table. The system stores UDCs in the User Defined Codes table (F0005). You can also print a list of all UDC tables to review.

You might need to set up some additional UDCs that are specific to the countries in which you conduct business.

Important:

UDCs are central to JD Edwards EnterpriseOne systems. You must be thoroughly familiar with UDCs before you change them.

The following UDCs are used to track and process information in the JD Edwards EnterpriseOne Payroll system.

2.5.1 Batch Source Type Codes (18/BS)

You use batch source type codes to specify the labor rules component, such as the overtime rule set, retroactive pay rule, or timecard template, used to generate a batch of timecards in the time management module.

2.5.2 Employee Group Select Table Codes (18/ST)

You use employee group select table codes to define the type of timecards that you want to process in the Time Management module. Examples of timecard types that you might set up are current timecards or historical timecards.

2.5.3 Employee Group Type Codes (18/EG)

You use employee group type codes to identify a group of employees to include in time management processing. Examples include Combo Group and Select Group.

2.5.4 Field/Function Usage Codes (18/UC)

You use field/function usage codes to specify where a definition can be used in the time management module. For example, you would not want to use the Home State field when defining a rate formula; however, you might use that field when defining employee groups for time management processing. Therefore, you might use code ESG (Employee Select Groups) to specify that the Home State field can be used when creating employee groups. Using Field/Function Usage codes, you can specify where each field or function can be used in the system.

2.5.5 Field Definition Table Codes (18/FT)

You use field definition table codes to identify the tables from which you can select fields to include in formulas that you use in the time management module. For example, if you want to use the fields from the Employee Master Information table (F060116) when you create a formula, you can set up a Field Definition Table Code for that table. When creating the formula, you enter that Field Definition Table code to gain access to the fields from that table.

2.5.6 Holiday Codes (06/HC)

You use holiday codes to designate holidays that are observed by the organization.

2.5.7 Insured Basis Table Codes (06/IP)

You use basis table codes to identify a table of pay, deduction, and benefit types that define the basis for various payroll calculations. These tables are used in several processes, such as defining insured pay types for workers compensation and identifying pay types to be included in automatic timecard generation.

2.5.8 Master Status Codes (18/MS)

You use master status codes to identify the status of batches of timecards that you are processing through the time management module. Examples of codes that you might use are Approved, Pending Approval, or Canceled.

2.5.9 Pay Cycle Codes (07/PY)

You use pay cycle codes to identify values for master payroll cycles. You must create a new code for each payroll cycle that you want to create. Examples of pay cycle codes are Weekly, Biweekly, and Monthly.

2.5.10 Pay Cycle Group Codes (07/PG)

You use pay cycle group codes to group similar groups of employees for payroll processing. For example, if a group of employees has a certain criteria that is not already being tracked by the system, you could create a pay cycle group and enter that group in the data selection when you process payroll.

2.5.11 Processing Quarter (07/QU)

You use processing quarter codes to identify which quarter of the calendar year you want to include in reports.

2.5.12 Auto Deposit Override Flag (07/AM) (Release 9.2 Update)

You use the auto-deposit override flag code to make an auto-deposit payment for the complete payroll amount. When the auto-deposit override flag is set to R, the payment is deposited to the remainder account.