Understanding Festive Advance Payroll Integration

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

After setting up some base information such as calculation rules and pay program and then calculating and reviewing the appropriate festive advance amounts for individual employees in HR, Global Payroll then 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 and the process involved in setting up, posting, paying and recovering festive advance amounts. A quick look at the steps involved in setting up and managing festive advances from HR through to Global Payroll provides you with an understanding of the "big picture" of the Administer Festive Advance business process.

You firstly use PeopleSoft HR to set up and manage your festive advances (steps 1–8) and then use Global Payroll to post, pay and then recover the advances (steps 9–12):

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

2. Set up the default religions and ethnic groups for your employee's using the Personal Data - Eligibility/Identity 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. Use the Festive Advance Pay Program page to group your festive advance payment rules to create the programs you'll use to pay festive advances to your employees. You select the festive advance earnings and deductions that will be used in Global Payroll to pay and then recover the festive advance after posting.

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

6. Override any default festive advance set up 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 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 FA Pay Details page.

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

   The posting process (GPSG_FA_POST AE) enables you nominate the calendar to which the payments are to be posted, and to copy the festive advances from the FA Payments table into the Global Payroll Positive Input tables.

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

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

    • FAD AC ADV AMT (Advance Amount Accumulator): Holds the amount paid and is cleared out when each advance is paid so that it only contains the value of the last paid advance.

    • FAD AC FA BAL (Outstanding Balance Accumulator): Used to hold the outstanding balance and is also 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. This enables you to recover the entire outstanding festive advance payments when an employee terminates.

See PeopleSoft Human Resources Administer Workforce, PeopleSoft Human Resources Administer Festive Advance, and PeopleSoft Global Payroll product documentation for more information.