Oracle Applications R12 - Payroll Elements Setup

OracleApplicationsR12
PayrollElementsSetup
The basic idea in writing this article is just to show the use of elements,
links, and balances working in Oracle Payroll.
2009
SikandarHayatAwan
admin@erpstuff.com
www.erpstuff.com
11DEC2009

www.erpstuff.com | 11-DEC-2009 2-21

Oracle Applications R12 Payroll
ERPSTUFF

Business Requirement
Organization is giving loan facility to the employees so they can take loan (we will use car loan in our
example) and can pay on equal Installments. We need to setup in Oracle Payroll so in each payroll run
(salary calculation) the amount should be deducted. At the end the use/need of Fast Formula will be
explained while the use or explanation of Fast Formula is not in the scope of this article. After setting it up
we will run quick pay to view the results. This is just a very basic level example so please consider it only
for learning purposes. We will work in two sections 1
st
Setup and then Testing.

We will use Oracle Applications R12 Vision instance the one I used to write this article is 12.0.6.

What to do?

Data
Responsibility UK HRMS Manager
Employee Abbott
Loan Amount 3000
Installment Amount 1500
Payroll Process Monthly
Balance Remaining Balance

Now lets start by first defining elements to capture user input of Total Loan Amount and then Installments
Amount.


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Elements Setup

HRMS: Total Compensation > Basic > Element Description

Change effective date.
Type of this element should be nonrecurring as we want this to be executed only once to input Car Loan
Amount.
Save the data.


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Select Primary Classification as Information.
Click on Input Values [B].

Enter the required information.
Save the data.

Now we will define another element of type recurring to deduct Installments.

HRMS: Total Compensation > Basic > Element Description


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Save the data.
Click on Input Values [B].
As the primary classification is Deductions so Oracle automatically added Pay Value.

Save the data.
The definition of two elements is completed and now we need to link these with certain criteria.

HRMS: Total Compensation > Basic > Link


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First search Car Loan and select Monthly in Payroll, save the data.


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Secondly search Car Loan Installment and select Monthly in Payroll.
Save the data.

So for we have completed two tasks first is defining elements and then linking these to our Monthly
payroll.

Our next step would be to do something to keep remaining balance once deduction is done. Like

Car Loan 3000 Add
Installment 1500 Subtract
-------
Balance 1500 Update
====
Installment 1500 Subtract
-------
Balance 0 Update
====

Open the Balance form and define a balance.

HRMS: Total Compensation > Basic > Balance


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Enter required information and save the data.

Select Car Loan element and select it as ADD and then Car Loan Installment element as Subtract.
Save the data and go back to main screen.
Click on Dimensions [B].


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Select _ASG_ITD.
Save the data.

Name Description Grossup Balance Status
_ASG_ITD Assignment Level all time
_ASG_PROC_PTD Assignment Level in the current earnings period
_ASG_RUN Assignment Level within a run
_ASG_YTD Assignment Level within a year

Great the setup is done now time to test it. Now we need to test it while keeping in mind that the
employee we will select should be Assigned monthly payroll otherwise we will not be able to assign
element to him/her.


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Testing Setup
HRMS: People > Enter and Maintain > Search > Assignment > Entries [B]

Search your desired employee in my case he is Abbott.

Click Assignment [B].


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Confirm if the Payroll in Monthly in the top right area of this screen.
Click Entries [B].

Select a new record and select Car Loan.
As the element is Nonrecurring that why it got to date.


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Now click Entry Values.

Enter Loan Amount, close this window.


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Add another record and select Car Loan Installment.
Click Entry Values [B].


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Enter Installment Amount. Here we will have only two Installments of 1500 each.
Close this window.
Save the data.


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Now we will run quick pay to view the results.
Click Others [B].

Click Element Selection [B].


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Deselect all other elements.
Save and close this screen.
Click on Start Run [B].

If the status is complete then click on View Results [B]then Run Results and in case of any error resolve
that first and Retry.


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Great it is showing 1500 deduction.
Selecting Car Loan row and click Run Result Values.

Here it is showing the Total Loan Amount we entered in element.
Close these screens and go back to Payroll run screen.
Now again click on View Results and this time select Balances from the LOV.


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This is showing us the remaining balance of 1500 as we already deducted 1500.

Now as we want to run another quick pay so change the effective date to one month later. Like our first
payroll was for November so now we will run for December this is because our payroll is monthly.


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Click Element Selection

Make sure only Car Loan Installment is select and also notice our Car Loan element is no more as that was
one time only to capture total amount.
Save and close this screen.
Click Start Run [B].


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Our Quick Pay is complete.
Now we will check our calculation in the same way we did earlier.

Again deduction of 1500.


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Great our remaining balance is 0.

Questions yet to be answered

What will be remaining balance if you run Quick Pay for 3
rd
month?
When Installment of 1500 will stop and who will stop?
Can I check if the remaining balance is 0 (zero) then no more deductions?

Answer

Now here is the role of Fast Formula which we will try to discuss in next article.

Hopefully now you got a good idea how we setup to make such deductions and now to control its
processing we are feeling the need of Fast Formula.

Thanks

Your feedback is highly appreciated at feedback@erpstuff.com

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