Defining Earning Elements

To set up earning elements, use the Earning (GP_EARNING) component.

Page Name

Definition Name

Usage

Earnings Name Page

GP_PIN

Name the element and define its basic parameters.

Calculation Page

GP_ERN_DED_CALC

Define calculation rules for an earning element.

Earnings - Generated Elements for Element <Name> Page

GP_AUTOGEN_SEC

Displays the system-generated components and accumulators that have been created for an earning element.

In Absence Management, earnings represent compensation that payees receive for paid absence events. You define earning elements to represent your organization's earning rules. The earning elements that you create in Absence Management should correspond to earning codes that are defined in your payroll system. For example, if your payroll system has an earning code for vacation pay, you should set up an earning element in Absence Management for vacation pay. After you define earning and deduction elements, you map them to payroll earning and deduction codes.

To create an earning element:

  1. Define the earning name, security levels, and allowable overrides on the Earnings Name page.

  2. Set up the calculation rule on the Earning - Calculation page.

    You select the components that make up the calculation rule: an amount or a combination of a base, percent, rate, and unit.

    Note: You cannot change a calculation rule after you run the Absence Take process.

Use the Earnings Name page (GP_PIN) to name the element and define its basic parameters.

Navigation:

Set Up HCM > Product Related > Global Payroll & Absence Mgmt > Elements > Payroll Elements > Earnings > Earnings Name

This example illustrates the fields and controls on the Earnings Name page.

Earnings Name page

Note: You name every element and define its basic parameters on an Element Name page. All element components within Absence Management share the same first Element Name page (GP_PIN). However, the Earnings Name page contains the following additional fields that apply only to earnings.

Field or Control

Description

Driver Accumulator

This field applies only to Global Payroll.

User Fields

This link applies only to Global Payroll.

Note: For information on the remaining fields on the Earnings Name page, see Defining Element Names.

Use the Calculation page (GP_ERN_DED_CALC) to define calculation rules for an earning element.

Navigation:

Set Up HCM > Product Related > Global Payroll & Absence Mgmt > Elements > Payroll Elements > Earnings > Calculation

This example illustrates the fields and controls on the Earnings - Calculation page.

Earnings - Calculation page

Field or Control

Description

Calculation Rule

Define the calculation rule for the element. Valid values are Amount, Base x Percent, Unit x Rate, and Unit x Rate x Percent. Your selection affects the availability of other fields.

When you process absence events, the system can generate units for the earning elements, which you can transmit to your payroll system. If you integrate Absence Management with Payroll for North America or Payroll Interface, select a calculation rule that includes units. Unit x Rate x Percent is recommended because it enables you to send both rate and percent information to your payroll system.

Once you define a calculation rule for an element, you cannot change the rule after output results are generated for the element. If you need to change the element definition, create a new element.

Unit Type, Rate Type, Base Type, Percent Type, and Amount Type

The fields that you can update here depend on the selected calculation rule. Select Payee Level for each applicable component.

Note: In Global Payroll, these fields tell the system how to determine the component values or amount. In Absence Management, you use the Absence Take - Day Formula page (when you link the earning element to a take element) to tell the system how to determine the component values or amount.

Unit Element, Rate Element, Base Element, Percent Element, Amount Element, Amount Value and Amount Currency

These fields are not available when you select Payee as the component type.

Generation Control

This field applies only to Global Payroll.

Pre Process Formula and Post Process Formula

These fields apply only to Global Payroll.

Frequency Option and Frequency

These fields apply only to Global Payroll.

Retro Recalculation Option

Specify whether to recalculate an element during retroactive processing. Values are:

Always Recalculate

Do Not Recalculate

If you select Always Recalculate here, the element is recalculated during processing the element in a retroactive situation.

Note: You can override this field on the Retro Process Overrides page.

See Understanding Retroactive Processing.

Use the Earnings - Generated Elements for Element <name> page (GP_AUTOGEN_SEC) to displays the system-generated components and accumulators that have been created for an earning element.

Navigation:

Set Up HCM > Product Related > Global Payroll & Absence Mgmt > Elements > Payroll Elements > Earnings > Auto Generated Accumulators

Click the View Generated Elements link.

This example illustrates the fields and controls on the Earnings - Generated Elements for Element <name> page.

<>Earnings - Generated Elements for Element <name> page

Field or Control

Description

Components

Displays the automatically generated element for each component of the earning element.

Auto Generated Accumulators

Displays automatically generated accumulators.