Understanding Festive Advance Payroll Integration

The festive advance payment ensures that employees have sufficient money to pay for larger than usual expenses that are often incurred during certain festival periods. This money is not a bonus or additional salary; but it is a form of interest free loan that is advanced by the employer, and it is recouped by deductions that are made in subsequent payrolls.

You set up base information such as calculation rules and a pay program and then calculate and review the appropriate festive advance amounts for individual employees in HR. Then, Global Payroll for Malaysia enables you to:

  • Distribute the amount to the employee.

  • Recover the advance from the employee in subsequent payrolls.

The following steps provide an overview of the integration between HR and Global Payroll for Malaysia. These steps cover the process for setting up, posting, paying, and recovering festive advance amounts.

Note: You first use HR to set up and manage festive advances (Steps 1 through 8). Then, you use Global Payroll to post, pay, and recover the advances (Steps 9 through 12).

  1. Set up religions and ethnic groups using the Religions page and Ethnic Group page in HR.

  2. Set up the default religions and ethnic groups for employees using the Modify a Person - Regional page.

  3. Set up the rules by which the festive advance amounts are calculated using the Festive Advance Calc Rule (festive advance calculation rule) page.

  4. Group festive advance payment rules to create the programs that you use to pay festive advances to employees using the Festive Advance Pay Program page.

    You select the festive advance earnings and deductions that are used in Global Payroll to pay and then recover the festive advance after posting. You also use this page to select the calculation rule, which determines whether the system uses a flat amount, a percentage, or both.

  5. Link festive advance pay programs to specific codes using the Job Code Table - Job Code Profile page.

  6. Override any default festive advance setup for specific employees using the Job Data - Employment Information page, and specify a date from which the employee is eligible for festive advance.

  7. Identify eligible employees and calculate the festive advance based on setup, rules, and type of festive holiday using the Festive Advance Calculation page.

    Festive advance amounts are stored in the FA Payments table.

  8. Review and confirm festive advance calculations.

    View, change, and approve calculated festive amounts online using the FA Employee Details page and the FA Pay Details page.

  9. Post calculated festive advance amounts to Global Payroll using the run control page.

    The posting process (GPMY_FA_POST_AE) enables you to copy the festive advances from the FA Payments table into the Global Payroll Positive Input tables. You can then nominate the calendar to which the payments are posted.

  10. Festive advance earnings for each festive amount type enable you to pay the festive advance.

  11. When an advance is paid, it is added to the following two accumulators:

    • FAD AC ADV AMT (advance amount accumulator).

      This accumulator holds the amount paid, and it is cleared when each advance is paid so that it contains only the value of the last paid advance.

    • FAD AC FA BAL (outstanding balance accumulator).

      This accumulator is used to hold the outstanding balance, and it is reduced by the payback deductions.

  12. Customary festive advance payback deductions, corresponding to each of the festive advance types (and supporting elements), enable you to deduct festive advance amounts in subsequent pays.

    These advance payback deductions enable you to recover all of the outstanding festive advance payments when an employee is terminated.