1. How do I configure advance pay for Ireland?
  2. How Advance Pay is Processed in Payroll

How Advance Pay is Processed in Payroll

Based on the calculation method, here’s how Advance Pay is processed:

  • If the calculation option of Current Period is selected, then the net pay from the current payroll period will be used to derive the advance periodic value. Any direct payments will not be included. If multiple periods are advanced, the periodic value will be multiplied to determine the full advance value.
  • When the Advance Pay element is processed in a payroll period for the first time, the Advance Payment will be calculated and displayed in the Direct Payments section of the payslip. Note that this doesn’t impact the statutory deductions.
  • When the subsequent periods are processed, the recovery amount in element Advanced Pay Results is shown in the Other Deductions section of the payslip.
  • When there are sufficient earnings, the Advance Pay Results element is used to recover a full periodic amount. If the earnings aren’t sufficient, then a partial amount is deducted to avoid a negative net. The recovery will continue beyond the leave period to clear the arrears amount.
  • If you’ve selected Yes for Defer Other Payments and additional payments exist, they will be made in the first pay period after the leave is completed. Any additional deductions will also be processed post leave period.
  • When the Advance Pay is fully recovered from the employee, the Advance Pay element populates the end date attribute and processing automatically stops, and a message is displayed on the employee payslip to confirm the repayment is complete.
  • The payroll submission will report the figures in each pay period.
  • If any changes are made to the Advance Pay element after the initial pay period in which the advance payment was processed, those changes will be ignored. Only the details from the original processing will be used.
  • If User Defined is selected as the calculation method, but a custom formula for Advance Pay has not been defined, the process won’t make any payments and will end date the element.
  • To define a custom fast formula:
    1. Use the fast formula with the name IRELAND_ADVANCE_PAY_CALC.
    2. Set the formula type as Oracle Payroll.
    3. Enter the formula text as shown here:
      • PERIOD_ADVANCE_VALUE = <value>
      • Return PERIOD_ADVANCE_VALUE
    4. Compile the formula.
    Note: It is recommended that no advances are in progress at the time of cutover to avoid additional complexity in loading balances and payroll processing.