Define Elements, Balances, and Formulas

The Define Elements, Balances, and Formulas task list contains the tasks required for creating payroll elements for compensation, absences, time and labor, and HR management.

You can also use this task list if you're recording earnings, deductions, and other payroll data for reporting, compensation and benefits calculations, or transferring data to a third-party payroll provider.

Note: If you're using Oracle Global Payroll, use the Define Payroll task list instead. The Define Payroll task list includes other tasks required to set up payroll processing.

Required Tasks

Your business requirements and product usage decide which required tasks you need to complete. The required tasks include:

Elements
Payroll Definitions, which is usually required to support elements
Consolidation Groups, which is required for creating payroll definitions

If you use predefined Payroll Interface extracts to transfer data to a third-party payroll provider, you might need to create element subclassifications, balances, organization payment methods, and object groups. See the Global Payroll Interface documentation for more information.

Before You Begin

Before you start the Define Elements, Balances, and Formulas task list, complete the tasks these offerings contain.

Task	Use To	Why It's Important
Manage Legal Entities	Create payroll statutory units.	Ensures that hiring employees automatically creates payroll relationship records.
Manage Legal Entity HCM Information	Associate a legislative data group with each payroll statutory unit.	Ensures that hiring employees automatically creates payroll relationship records.
Manage Features by Country or Territory	Select Payroll Interface as the extension for any countries or territories where you extract HR data to send to a third-party payroll provider.	Ensures that you use the appropriate element templates to create earnings.

Configure Legislations for Human Resources

Use this task to create and edit legislative data for a country or territory that doesn't have a predefined country extension. It guides you through configuring some payroll objects and values required for creating elements, including:

Tax year start date
Period of service on rehire rules
Default currency
Element classifications
Component groups
Payment types

Note: Complete this task before the other tasks in this task list.

Elements

Use elements to communicate payment and distribution information to payroll applications from the source applications listed in the following table.

Source Application	Element Purpose
Compensation	Earnings and deduction elements, such as bonuses, overtime earnings, and voluntary deductions. Information elements to load user-defined data to use during a workforce compensation cycle.
Benefits	Deduction elements to record activity rate calculation results, such as: Employee contributions and employer distributions for medical options Flex credits for flex benefits Earnings elements to disburse unused credits as cash.
Time and Labor	Time card details such as salary, overtime hours, and shift unit payments.
Absence Management	Absence details such as number of hours, days absent, or accrual absence balance details.

Payroll Definitions

The payroll definition supplies the payroll period frequency and dates, which some applications use for payroll calculations. A payroll is assigned to the assignment record of an employee, it indicates the payroll frequency for the assignment such as weekly. This table shows which applications require payroll definitions.

Application	Payroll Definition Required?	Usage Conditions
Global Payroll Interface	Yes, optional	Required if you run the Calculate Gross Earnings process
Compensation	Yes, optional	Required if you capture salary with a frequency of payroll period
Benefits	Optional	Required to use the payroll period frequency to calculate communicated rates or values passed to payroll.
Time and Labor	Optional	N/A
Absence Management	Optional	N/A

Consolidation Groups

You must have at least one consolidation group for each legislative data group where you create elements. Payroll definitions require a consolidation group.

Other Payroll-Related Setup Tasks

Your implementation might require other tasks from My Client Groups.

Task	Requirements
Organization Payment Methods	To record personal payment methods for your employees, you need to create organization payment methods and associate them with your payroll definitions. Organization payment methods define the combination of payment type and currency to use for payments to employees or external parties.
Element Classifications	Primary element classifications are predefined. If you run the Calculate Gross Earnings process (provided with Global Payroll Interface), you might create subclassifications to feed user-defined balances.
Fast Formulas	The Elements task provides predefined payroll formulas for payroll interface users. You can also write formulas for several uses, including: Validating user entries into element input values Configuring compensation, benefit, and accrual plan rules Calculating periodic values for gross earnings and defining element skip rules for the Calculate Gross Earnings process (provided with Global Payroll Interface)
Balance Definitions	If you're using Global Payroll Interface, creating earnings elements creates balances automatically. You can edit these generated balance definitions. If you're using the Calculate Gross Earnings process, you might want to create other balances for extracts or reporting.
Object Groups	You can create object groups to specify subsets of elements or payroll relationships to include in a report or process, such as the Calculate Gross Earnings process.