Understanding Interim Payments Entry

You use the Interim Entry program (P070701) when you need to create payments that are outside of the normal payroll cycle. You can enter a standard interim (off-cycle) payment for payments such as bonuses or terminations that occur outside of the normal payroll cycle. You can also enter interim payments to allow employees to receive flat-amount or calculated advances on their earnings. You can enter interim payments to record manual payments that were given to employees and to calculate gross-up amounts for individuals or groups of employees. You can also use interim payments to convert or adjust employee payroll history. The Interim Entry program also generates the component pay timecards.

If you enter interim payments for more or less than a full pay period, you can also specify that you want the DBAs that are associated with that payment to calculate at a rate other than what the system would normally calculate during a regular pay period. Using the DBA factors, you can specify the percentage of the pay period for which you want the DBAs to be calculated.

To create an interim payment, you must first set up an interim payroll ID. Each interim payment that you enter must be associated with an interim payroll ID. If you process interim payments during the regular payroll cycle, the system generates reports, journal entries, and payroll history for the interim payments and the regular payroll payments at the same time. In addition, if you have not printed payments or created bank files using the interim payment workbench, the system prints payments and creates bank files for interim payments and regular payments during the payroll process. The system does not re-create printed payments or bank file information during regular payroll processing if those steps were completed using the Interim Payment Workbench. Alternatively, you can process a separate payroll cycle for interim payments.

You can enter interim payments using either interactive or batch processing. When you use interactive processing, the system automatically calculates the interim payments and updates the interim payment workfiles when the payment is entered into the system. Interactive processing enables you to print payments from the Interims Workbench immediately after they are entered into the system.

When you use batch processing, you must enter the interim payments and then run the Interim Calculations program (R07280) to process the interims. You can run a single version of the calculation program to process all interim payments that are associated with an interim ID, or you can run multiple versions of the calculation program at once.

Note: To enter interim payments for calculated advances, you must use interactive processing. Because the system needs to calculate deduction and tax amounts before the net payment amount is determined, you cannot enter calculated advance interims using batch processing. In addition to calculated advances, individual gross-up payments are also available only in interactive mode.

If you process a large number of interim payments, you might want to use multiple versions of the calculation program to process interim payments. To do so, you must create multiple versions of the Interim Calculations program and set up those versions to run during step I (Interims Multiple Processing) of the reports setup that you are using for interim payments. Each version that you enter in the reports setup should have unique data selection. When you run the calculation programs, the system launches each version simultaneously and calculates the interim payments that meet the data selection criteria that is entered for that version. This process can significantly shorten processing time.

For example, if you enter interim payments for employees who work in three different companies, you might want to set up three different versions of the Interim Calculations program. You might set up the data selection for each version to select employees from one of the three companies. After you enter the interim payments, you can process them using the multiple versions functionality, launching all three versions of the Interim Calculations program simultaneously. Each version would process interim payments for one of the companies. Depending on how the system is set up, each of these versions might be able to run at the same time. Therefore, processing the three smaller jobs might be significantly faster than processing one job to calculate all of the interim payments for all three companies.

After you run the batch processors, you can print the interim payments from the Interims Workbench. The processing options for the Interim Payment Workbench determine whether you create interim payments using interactive or batch processing.

Note:

If you process multiple versions of interim calculation processing, you should create one version for each processor in the system. Contact the system administrator to determine whether running multiple versions is an acceptable option for the organization.

Also, if you process interim payments using the batch method, you cannot override the information on the Employee Tax Information tab during interim entry. This tab includes these fields:

Work Tax Area

Resident Tax Area

School District Code

Work Tax Area Source

Residency Status

Source of SUI Reporting (source of state unemployment insurance reporting)

DOB (date of birth)

EIC Status (earned income credit status)

Tax Method In addition, you must use the Tax Overrides selection from the Form menu to enter tax override information. The tax override tabs are disabled when you process interim payments using the batch method.

You can use standard interim payments (also known as off-cycle interims) to create payroll payments outside of the regular payroll cycle. You might need to create termination, bonus, or other payroll payments at a time when it is not convenient to process an entire payroll cycle.

For example, when an employee is terminated between payroll cycles, you might need to generate the employee's last payment immediately. If you are using JD Edwards Enterprise Workflow Management, you can automate some of the processes that are involved in creating a termination payment. If you are not using the termination workflow, you can enter an off-cycle interim payment for the employee using the Interims Workbench.

You can enter new timecards, use timecards that are already in the system, or use a combination of the two to create the interim payment. You can also override employee automatic-deposit instructions, tax information, and DBA calculations on an interim payment.

Important:

When you enter interim payments using the Interim Entry form, the system overrides the home company on all of the timecards that are associated with that interim payment with the home company from the employee's F060116 record. The Interim Entry process does not use the Company Options setting to determine whether to override the home company.

To override the home company on timecards with a value other than the home company in the F060116 table, you must enter the override value in the Home Company field on the Payment Override tab on the Interim Entry form. The system uses this value on all of the timecards that are associated with the interim payment.