Define Payroll Elements for Processing Absences

You define elements to calculate and process absence payments in Oracle. Create an absence element for each absence plan that transfers absence payment information for payroll processing.

When you create the plan, you must select the absence element to link it to the absence plan.

You need to create an Absence element only if the leave results in a leave payment or leave deduction. If a person is paid normal salary and is availing of annual leave, then you don't create an Absence element for the annual leave type, because no leave payment calculation is required. You need to set up integration for annual leave only if you allow employees to cash out unused leave balance on termination, enrollment end date, or special occasion, or if you pay employees leave payment other than normal salary when they take annual leave.

For example, if you're creating an Absence element for annual leave, then you need to select Vacation as the secondary classification. And, if you're creating an Absence element for a personal leave or an unpaid leave, then you need to select Other as the secondary classification.

When you define an absence element, your responses to the element template questions determine which elements, balances, formulas, and calculation components the template generates.

Define an absence element, selecting a primary classification of Absence, and a secondary classification. Typically, the predefined values for secondary classification include Vacation, Maternity, Sickness, and Other. Use the Manage Elements task in the Payroll Calculation or Setup and Maintenance work areas.

Defining an absence element involves these tasks:

Completing absence detail questions
Completing absence payment questions
Completing unpaid absence payment questions
Completing accrual liability and balance payment questions
Submitting the element
Defining element eligibility records
Defining cost distributions

Complete Absence Detail Questions

The questions you complete in the Absence Details section determine which subsequent questions the template displays. You enter this information in the Absence Details section:

Specify the calculation units to use when reporting the absence, for example that's shown on the payslip, and statement of earnings. Typically, you select Days or Hours for your reports that correspond to the units for your absence plan. When creating an absence element, select the work calculation rule to calculate the absence rate.

Select the absence information to transfer to payroll based on the type of absence management plan.

Note: Absence transactions return an error if you select the Accrual Balances option. Oracle recommends that you select the Accrual Balances and Absences option. Also, for the generated Entitlement element, deselect the Process in payroll run and Process once per period check boxes in the Element Summary page to skip the leave payment calculation during payroll run.

Absence Management Plan Type	Absence Information to Transfer	Examples
Accrual	Accrual Balances	A vacation accrual plan that isn't processed through payroll. The leave isn't shown separately on the statement of earnings.
Accrual, Leave Donation, Compensatory	Accrual Balances and Absences	A vacation accrual plan that's processed through payroll. The leave is shown separately on the statement of earnings.
Qualification	Qualification Absences	A maternity plan that's processed through payroll. The leave is shown separately on the statement of earnings.
No Entitlement	No Entitlement Absences	A no entitlement leave plan that's processed through payroll. The leave is shown separately on the statement of earnings.

Complete Absence Payment Questions

You can choose to reduce the employee's regular earnings by the full absence payment or a defined rate. This option is defined in the Absence Payments section of the absence element template. Select the appropriate option for salaried employees, as defined in the table below.

Question	Steps
Reduce regular earnings by absence payment	Doesn't require a rate definition.
Select rate to determine absence deduction amount	Select this option if your absence payment: Is at a different rate than your absence reduction In this case, use the associated rate fields to select the rates to determine the absence deduction amount and rate to use in the absence calculation. You're processing unpaid absences

Question

Steps

Reduce regular earnings by absence payment

Doesn't require a rate definition.

Select rate to determine absence deduction amount

Select this option if your absence payment:

Is at a different rate than your absence reduction

In this case, use the associated rate fields to select the rates to determine the absence deduction amount and rate to use in the absence calculation.
You're processing unpaid absences

Complete Accrual Liability and Balance Payments Questions

If you're going to transfer accrual balances, complete these questions.

Element Template Section	Question	Description
Accrual Liability and Balance Payments	Calculate absence liability?	Select this option if you want to calculate the liability balance. Use the associated rate field to select the rate to use in the liability balance calculation.
Accrual Liability and Balance Payments	Does this plan enable balance payments when enrollment ends?	Creates the Final Disbursement shadow element, if the value selected is Yes. If No, the shadow element isn't created.
Accrual Liability and Balance Payments	Does this plan enable partial payment of balance?	Creates the Discretionary Disbursement shadow element, if the value selected is Yes. If No, the element isn't created.

Submit the Element

When you submit the element, the template automatically configures a base pay element, balances, formulas, and calculation components.

The template also configures additional shadow elements, depending on the options selected in the template to transfer absence information, as shown in this table.

Element Name	Purpose
<Absence Name>	Absence element you associate with the absence plan.
<Absence Name> Accrual <Absence Name> Accrual Calculator <Absence Name> Accrual Result	Shadow elements: Retrieves absence accrual information from Absence Management Processes liability
<Absence Name> Entitlement <Absence Name> Entitlement Calculator <Absence Name> Entitlement Result	Shadow elements: Retrieves absence accrual information from Absence Management Processes absence payments and deductions
<Absence Name> Entitlement Retroactive	Shadow element used to process absence payments and deductions in retroactive processing.
<Absence Name> Discretionary Disbursement <Absence Name> Discretionary Disbursements Calculator <Absence Name> Discretionary Disbursements Result	Shadow elements: Retrieves partial payment information from Absence Management Processes these disbursements
<Absence Name> Discretionary Disbursement Retroactive	Shadow element used to process partial payment disbursements in retroactive processing.
<Absence Name> Final Disbursement <Absence Name> Final Disbursement Calculator <Absence Name> Final Disbursement Result	Shadow elements: Retrieves final payment information from Absence Management, such as upon employee termination Processes these disbursements
<Absence Name> Final Disbursement Retroactive	Shadow element used to process final payment disbursements in retroactive processing.

Define Element Eligibility Records

Define element eligibility records for all the elements generated by the template, for example for the base element, the accrual and entitlement elements, discretionary and final disbursement elements. For example, for the element Vacation 1, you must create element eligibility as follows:

<base element> (Vacation 1)
<base element> accrual (Vacation 1 Accrual)
<base element> entitlement (Vacation 1 Entitlement)

If you chose to create the final disbursement or discretionary elements, you must also create element eligibility for these shadow elements:

<base element> discretionary disbursement (Vacation 1 Discretionary Disbursement )
<base element> discretionary disbursement result (Vacation 1 Discretionary Disbursement Result)
<base element> final disbursement (Vacation 1 Final Disbursement)
<base element> final disbursement result (Vacation 1 Final Disbursement Result)

If you're processing retroactive payments, you must also create element eligibility for these retroactive shadow elements:

<base element> entitlement retroactive (Vacation 1 Entitlement Retroactive )
<base element> discretionary disbursement retroactive (Vacation 1 Discretionary Disbursement Retroactive)
<base element> final disbursement retroactive (Vacation 1 Final Disbursement Retroactive)

Define Cost Distributions

If your enterprise calculates cost distributions, specify costing element eligibility for these payment elements:

Base absence entitlement, entitlement results, and entitlement retroactive elements
Discretionary disbursement, disbursement result, and disbursement retroactive elements
Final disbursement, disbursement result, and disbursement retroactive elements

The costing process would cost the change in the liability balance since the last payroll period, debit the expense account and credit the liability account.

You must determine how to cost element eligibility records, including which type of costing to apply and which input value to cost. You determine which account numbers to specify for the cost account segments, such as the natural account, and which offset account balances the cost account.