Contents
1.
1 Pre-Processing
1.
1.1 Getting Time Card
Data
2.
1.2 Getting Benefits Data
3.
1.3 Getting Payments Data
4.
1.4 Getting Absence Data
2.
2 Processing
3.
3 Post Processing
1.
3.1 Prepayments
2.
3.2 Magnetic Transfer
3.
3.3 Archiver
4.
3.4 Check / Cheque Writer
5.
3.5 Deposit Advice
6.
3.6 Costing
7.
3.7 Transfer to GL
8.
3.8 Other Standard
Reports
4.
4 Validating Payroll
Run
1.
4.1 Process level View
2.
4.2 Assignment level View
Now, let's come back to the place where
we started. In the flash back, we learnt, how to configure things alright? Now
we will learn about the processing. Here we will use everything that we've
defined this far.
We know we have three stages to process
the payroll.
- Pre-Processing
- Processing
- Post-Processing
Pre-Processing
This is the stage where all the
preparations are done; things like, creating element entries, getting the
costing in place, taxing etc. So let's talk about these a little bit.
Getting Time Card Data
It all starts with the Time card entry,
which happens to be another module in Oracle HRMS called OTL (Oracle Time and
Labour). With OTL, we get all the time cards captured. Employees log in to OTL,
enter the time sheets and then it stores the time entered by each employee. It
also has rules in place to determine, whether it’s a regular working hour or an
Overtime Hour.
Now, as we have the time card in OTL, we
can either run a process to get it loaded on to Payroll system, or we might get
the Time card entries in the form of a file(Cases where Time card is managed by
a vendor), which can in turn be loaded by using BEE. So once either of the
process is complete, which means the data is transferred to the assignment
entries, the time sheet information is captured.
Getting Benefits Data
To move on, we should then look into the
Benefits side of it; the deductions by the Insurance premium / rate. It’s
captured by OAB (Oracle Advanced Benefits) OR OSB (Oracle Standard Benefits).
If we have the benefits system implemented, it will automatically create
assignment entries based on the deduction. However If our Benefits is managed
by a Vendor, we must request a Payroll Extract / Payroll Interface for the
same. Once we receive the Extract, we will have to use either an Interface or
BEE to load the Entries on to the assignments. So that takes care of the
Benefits portion of it.
Getting Payments Data
So next is the salary. We will have to
create Regular Hours / Regular Salary elements to link it to Assignments.
Isn't it? However in few cases, we might have to give some additional payments
to the Employees other than the regular wages. So, we should
always have those types of Non-Recurring elements in place, so that whenever we
need some additional payment, we could use the appropriate Element. The Wage
Attachment itself is a big subject to discuss. Please see the Wage attachment
link for further information on the same.
Getting Absence Data
Employees go on leave; sometimes they go
on Paid Leaves, and sometimes even on unpaid leaves. The Paid Leaves are
something that an employee must accrue during his tenure/ length of
service in the Company. Like the longer he stays, the leaves get added/ get
carried over from one year to another, based on business rules. That is known
as PTO (Paid Time Off) accruals. So we must have the Information elements
in place to gather the PTO information, so that we can print that along with
the Pay slips, to let the employee know about the accrual numbers. For Unpaid
leaves, the data is taken from the OTL, and based on that the payments are
made.
Once all these data are captured, the
next task is to Process the Payroll.
Processing
Now, we will process a Payroll. To do the same, we will have to run it
through a seeded Concurrent Program. The name of the Program is "Payroll
Run / Payroll Process".
Responsibility: HRMS
Manager
Navigation: View (M) -> Request (M) ->Submit a
new request -> Single request
Steps: Enter the name of the Process
"Payroll Run / Payroll Process" and enter the parameters. See Figure
5.23 – Payroll Process Parameters.
(Figure 5.23 – Payroll Process
Parameters)
|
Payroll Name |
Name of the Payroll |
|
Consolidation Set Name |
Name of the Consolidation
set used in the Payroll |
|
Date Earned |
The Pay period end date |
|
Date Paid |
The Pay period end date |
|
Element Set Name |
Name of the element set,
if the run has to be on specific Elements |
|
Assignment Set Name |
Name of the assignment
set, if the run has to be on specific Assignments |
|
Regular |
Type of run : Regular /
Supplemental |
This will process the payroll. We can always check the Concurrent
Program to see if there are any Errors in the log file. We can also check the
number processed to be reasonable. There is a screen called Payroll Process
Results (Navigation: View -> Payroll Process Results). Look for the
payroll Name and the time period, if the process status is complete, that means
the payroll has no errors. We will discuss more about it later in this chapter.
Post Processing
So now, as the payroll is processed, what are the next steps? There is a lot of processing involved. Some are mandatory processes, and some are optional. Usually the Optional Processes are to generate reports that can be used for verification. Usually Payroll Administrators ask for their own set of reports for comparison and logging, which is very enterprise specific. However in this section, we will learn about the Mandatory processes first and then will look at some of the widely used optional Processes.
Prepayments
This is a mandatory Process. This
process looks in to the amounts processed for each of the employees and their
respective Payment methods. It then divides the money to be paid on
to their Payment methods. So for an example, Joe's salary for his
month is $5000, and he has two preferred payment methods, 20% as
a check and rest of the money in a Bank Account. After running
Prepayments, the system will know that it has to transfer $1600 in to his bank
account and it has to give $400 as a check to Joe. To run the process, we need
to go to single Request and put the process name as PrePayments. See Figure
5.24 – PrePayments Parameters.|
Name
of the Process |
PrePayments |
|
Payroll |
Name
of the Payroll |
|
Consolidation
Set |
Name
of the Consolidation set used in the Payroll |
|
Start
Date |
The
Pay Period End Date |
|
End
Date |
The
Pay Period End Date |
|
Payment
Method Override |
This
can be used to override all payment methods. For an example, if our |
Usually in Start and End Date fields we should enter the date span in which the Prepayment will be run. The System will look in to the payroll tables to see, if there is any amount that has not paid yet with in those two dates. If it finds any, it will sort that according to the Payment methods. However as we should be running Prepayments after every payroll, the dates should always be the Pay Period end date. This saves a lot of system time.
If the system does not find details about the Personal Payment methods, then it will default the payment with the Default payment method used with the payroll. Usually the default payment method is Check.
Magnetic Transfer
As we know, this is the process for
direct deposits. |
Name
of the Process |
NACHA
/ BACS/ Process type based on Localization |
|
Payroll |
Name
of the Payroll |
|
Consolidation
Set |
Name
of the Consolidation set used in the Payroll |
|
Start
Date |
The
Pay Period End Date |
|
End
Date |
The
Pay Period End Date |
|
Payment
Method |
Choose
Direct Deposit |
|
Deposit
Date Override |
An
Override date, if we want the Deposit to happen later |
|
File
Id Modifier |
Choose
0 |
Once the Process is run, we can select the output of the Process and verify the details. We can then send the Output report to the Bank via established Preferred Electronic Media.
In few cases, in US Localization, we would also need to run the NACHA Report. This Report gives us the clear picture about the Number of Deposits and the Total Dollar amount.
|
Name
of the Process |
NACHA
Report |
|
NACHA
Process |
Choose
the NACHA process that was run with the table above. |
|
Totals
Only |
Choose
‘No’ to get a detailed report. |
We can then send this Report to our HR managers for a review.
Archiver
Now, as the Payments are about to
happen through the Direct Deposits, which is Bank's headache now, we will
proceed to the next action item, Payroll Archive. This Process generates a pay
slip kind of report. This is an optional step for most of the localizations.|
Name
of the Process |
Payroll
Archiver |
|
Start
Date |
The
Pay Period End Date |
|
End
Date |
The
Pay Period End Date |
|
Payroll
Name |
Name
of the Payroll |
|
Consolidation
Set Name |
The
Consolidation set associated with the Payroll |
Check / Cheque Writer
Let's write some checks. If we have
‘check’ as one of the valid payment methods then we need to write the checks to
get them out to the Employees. To do so, we will run a process called the Check
Writer process. We must have the Printer in place with the check leaf book
attached, so that the checks can be generated.Here, we must have the start check number with us. We can get that from the Printer. All we need is the number of the first check leaf which is going to be printed.
|
Name
of the Process |
Check
Writer |
|
Consolidation
Set |
The
Consolidation set associated with the Payroll |
|
Start
Date |
The
Pay Period End Date |
|
End
Date |
The
Pay Period End Date |
|
Payment
Method |
Check |
|
Sort
Sequence |
Any
sorting preference. Advised : Organization, Person |
|
Start
Check Number |
The
number of the first check leaf on the Printer |
|
End
Check Number |
Optional.
Fill in only if the count is known |
|
Check
Style |
Choose
a style of check printing: "Payroll Check" for the Usual check
writer and "Third Party Check" for the Garnishment / third party
payments |
We will have to run this Process twice, once for the Normal Payroll check, and again for the Third party Garnishments.
Deposit Advice
The Deposit Advice actually prints
the Pay slips that we might send to the Employees. This Process goes through
the Statements of Earning and gets us the details of the Earning and Deductions
in a more understandable format as a report.|
Name
of the Process |
Deposit
Advice |
|
Consolidation
Set |
The
Consolidation set associated with the Payroll |
|
Start
Date |
The
Pay Period End Date |
|
End
Date |
The
Pay Period End Date |
|
Sort
Sequence |
Any
sorting preference. Advised : Organization, Person |
|
Assignment
Set |
Enter
the Assignment set, if we want to run this for a set of Employees only. |
|
Deposit
Advice Style |
Choose
a style of Deposit Advice. You can create your own style and use it here. |
Costing
As Part of this process, Payroll
Engine divides the costs according to the Cost Allocation Flex Field, keeping
Overrides in consideration. This Process assures that the cost paid for labour
is accurately being captured. If no Costing Information is found on any
particular entry, the cost goes to the Suspense Account.|
Name of the
Process |
Costing |
|
Payroll |
Name of the
Payroll |
|
Consolidation
Set Name |
The
Consolidation set associated with the Payroll |
|
Start Date |
The Pay
Period End Date |
|
End Date |
The Pay
Period End Date |
Transfer to GL
This Process is the one that takes
care of the migration of cost to the General Ledgers. The Payroll Costs are
migrated to the General Ledger and then it gets added against the actual
financial accounts.|
Name of the
Process |
Transfer
to GL |
|
Consolidation
Set Name |
The
Consolidation set associated with the Payroll |
|
Start Date |
The
Pay Period End Date |
|
End
Date |
The
Pay Period End Date |
Other Standard
Reports
There are a few other Standard
Reports that can also be processed as part of the Oracle Payroll for reporting
purposes. Here is a list of few popular ones; however there are a lot of seeded
reports that can be used. We can also create our own reports and use them for
analysis, based on the requirements posted by our Payroll administration team.Payroll Activity Report: This report is run just after the Payroll Process and before the Prepayments. With this report we can view the status of the Payroll with details like, how many employees are processed, what is the total Earnings, Total Deductions, Total Taxes etc. It can be processed with the following details:
Name of the Process: Payroll Activity Report
- Beginning Date Paid: Last Day of Current Pay
Period
- Ending Date Paid: Last Day of Current Pay
Period
- Process Type: Payroll Runs
- Suppress Current Zero Records: Yes
- Full Report: Yes
- Reporting Dimensions: Run
- Sort Option One: GRE
- Employee Page Break: No
- All other parameters should be NULL
Costing Detail Report: This is run after the Transfer to GL process is complete for all Payrolls as of that date. This gives us a detailed picture of the accounts and the respective Labour costs for all Payrolls run as of the given dates.
Name of the Process: Costing Detail Report
- Costing Effective Date Begin: Last Day of Pay
Period
- Costing Effective Date End: Last Day of Pay
Period
- Output File Type: HTML
- All the other parameters should be NULL.
Costing Summary Report: This is run after the Transfer to GL process is complete for all Payrolls as of that date. This is more or less similar to the Costing Detail report, however with a summary of data, not with details.
Name of the Process: Costing Summary Report
- Costing Effective Date Begin: Last Day of Pay
Period
- Costing Effective Date End: Last Day of Pay
Period
- Output File Type: HTML
- All the other parameters should be NULL.
Payroll Register Report: This is run after the Transfer to GL process is complete for all Payrolls as of that date. This gives us details on the entire payroll process, starting from prepayments to costing for all Payrolls run as of the given date.
Name of the Process: Payroll Register Report
- Beginning Date Paid: Last Day of Pay Period (i.e.
06-MAR-2010)
- Ending Date Paid: Last Day of Pay Period (i.e.
19-MAR-2010)
- Suppress Zero Count Records: Yes
- Full Report: Yes
- Reporting Dimensions: Current
- Sort Option One: GRE
- Employee Page Break: No
- All the other parameters should be NULL.
Payment Register Report: This is run after the Transfer to GL process is complete for all Payrolls as of that date. This gives us details on the Payments made to the Employees as part of Labour cost for all Payrolls run as of the given date.
Name of the Process: Payment Register Report
- Starting Pay Date: Last Day of Pay Period
- Ending Pay Date: Last Day of Pay Period
- Payroll: NULL
- Consolidation Set Name: The Consolidation Set
being used
- Selection Type: Original Payment Date
- Display Employee Details: Yes
- Summary Report: No
- All the other parameters should be NULL.
Name of the Process: Third Party Payment Register Report
- Starting Pay Date: Last Day of Pay Period
- Ending Pay Date: Last Day of Pay Period
- Payroll: NULL
- Consolidation Set Name: The Consolidation Set
being used
- Selection Type: Original Payment Date
- All the other parameters should be NULL.
Name of the Process: US Gross to Net Summary
- Starting Pay Date: Last Day of Pay Period
- Ending Pay Date: Last Day of Pay Period
- GRE: NULL
- Payroll: NULL
- Consolidation Set Name: The Consolidation Set
being used
- Sort Option One: NULL
- Sort Option Two: NULL
- Sort Option Three: NULL
- Template: US Gross to Net Summary (PDF)
Validating Payroll Run
Process level View
This window shows all the details
related to the processes run for a particular payroll for a given period. Every
process that we run as part of Processing / Post Processing get registered
here. See Figure 5.25 – Payroll Process ResultsResponsibility: HRMS Manager
Navigation: View > Payroll Process Results
Figure 25 Payroll Process Results
(Figure 5.25 – Payroll Process Results)
|
Assignment
Process |
To
see the Process Results for a given assignment |
|
Messages |
To
see Error messages related to a given assignment |
|
Costing
Breakdown |
Shows
the Costing Breakdown |
|
Process
Information |
Shows
the Concurrent Process status and details. |
|
Concurrent |
Opens
up the View Concurrent Programs window |
Assignment level
View
Like the Payroll Process Results,
this screen helps us monitor the processes run for a given Assignment. See
Figure 5.26 – Assignment Process Results.Responsibility: HRMS Manager
Navigation: View > Assignment Process Results
Figure 26 Assignment Process Results
(Figure 5.26 – Assignment Process Results)
|
Messages |
To
see Error messages related to a given assignment |
|
Run
Results |
This button
opens the Run Results window to show the Pay Value of each element processed
for the employee, together with basic information about the element. From the
Run Results window, choose the Run Result Value button to view the input
values for an element. |
|
Balances |
Shows
up the Balance window for the Balance related Information |
|
Payment
Methods |
Shows
the details about the Payment method and the amount of money added to that as
part of the Payroll. |
|
Costing |
Shows
the Costing Breakdown |
|
Balance
Adjustments |
Shows
the Balance Adjustments if any |
|
Payment |
Shows
the Payments made by this payroll. Includes all. Direct deposits,
Garnishments and Check payments |
|
SOE
Report |
Displays
the Statement of Earning |
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