CE Payroll Integration

Prepared by: Mohammed Salah Mahmoud
CE-Payroll Integration Cycle

Oracle Payroll integrates with Cash Management so that you can verify that
payments that were made by check have been cashed.
Cash Management will view the generated payments and compare it against what
was loaded from the bank.
Cash Management will view the generated payments and compare it against what
was loaded from the bank. Note: loading the bank file is a custom solution.
Integration with Payroll - Cash Management integrates with Oracle Payroll. Using
Cash Management, you can do the following:
- Reconcile your payroll account with your bank statement.
- Undo the reconciled status of a reconciled payroll payment.
Matching Criteria for Oracle Payroll Transactions: The Cash Management Auto
Reconciliation program matches Oracle Payroll manual transactions against bank
statement lines if the transactions meet the following criteria:
- For manual Payroll payments, the payment number matches the statement line
transactions number and the payment amount, and the payment amount matches
the statement line amount.
----------------------------------------------------------------------------------------------------------First Problem:

Problem Statement:
1. In 11i, find that the 'Reconciliation Tab' in the Organizational Payment
Method form is disabled.
2. In R12, find that the 'Cash Management' in the Organizational Payment
Method form is disabled.
3. Login to HRMS Manager Responsibility.
4. Navigate to Payroll
Payment Methods
Query the Payment Method defined for the organization.
Find that the 'Cash Management' or 'Reconciliation' tab is
disabled.
Solution this issue:
1. Login to a HRMS Manager Responsibility
2. Navigate to Other Definitions --> Application Utility Lookups.
3. Query the following lookup types, and add a 'Code' and a 'Meaning' for
your legislation
o The following are the detailed instructions for doing this:
The following are the lookup types which you need to

query and update:
BANK_ACCOUNT_NAME
BANK_ACCOUNT_NUMBER
BANK_BRANCH
BANK_NAME
The Lookup Code would be the legislation code.
The Meaning will contain the segment name that contains

the value for the given lookup type.
For example, for BANK_NAME lookup type, the meaning

would be 'SEGMENT1', if segment1 in your Bank Flex field
stores the Bank Name.
If you do not have any segments for any of the lookup

types, then you can use the segment of the existing ones.
For example, if the Bank Name is the only one segment
available for your legislation (uses SEGMENT1), then while
defining lookup codes for other lookups (like
BANK_BRANCH etc.), you can point to the same
SEGMENT1.
2. After doing the above setup, navigate to the Payroll --> Payment
Methods form --> Query the payment method you have defined.
3. Confirm that the 'Cash Management' tab is now enabled.
Setup Steps to Reconcile Payroll Transactions in Cash Management:

1). Define the Legal Entity using Legal Entity Manager under Financials.
2). Attach this Legal Entity to the Primary Ledger.
3). The Business Group should have additional classifications of HR
Organization.
4). Attach the Primary Ledger to this Operating Unit (Others > Operating Unit
Information).
5). Set the 'HR: Business Group' and 'HR: Security Profile' profiles to the
Payroll Responsibility for Standard Security.
6). Set the 'MO: Operating Unit' (Business Group organization), 'GL: Ledger
Name' (Primary Ledger), CE: Bank Account Security Access' (Payroll) profiles
to the Cash Management Responsibility.
7). Define a Bank Account under Cash Management under the ownership of
this Legal Entity.
8). Create the Payment Method under Payroll with the same bank details and
mapping to the Cash Management bank.
Bank Name: If this already exists, enter the name exactly as it appears in
Accounts Payable.
Branch: If this already exists, enter the name exactly as it appears in
Accounts Payable.
Confirm that your source bank account in Oracle Payroll is the same bank
account that Oracle Cash Management uses to clear

Your payments. This confirmation assures you that you are operating with a
single consistent bank account rather than with
Duplicate accounts that introduce accounting errors.

payable

payment method

flex field payroll responsibility Bank-name, bank-branch, bank-account
For example: GL-FLEXFIELD-VALUES (BANKS PAYROLL) search AS your setup
Cost Payment: Check this box to specify that you want to cost only un-cleared payments for
this payment method.
Cost Cleared Payment: Check this box to specify that you want to cost only cleared payments
for this payment method. If you check this box, the Cost Payment box is also checked by default.
Cost Cleared Voided Payment only: Check this box to specify that you want to cost any
voided payments that have also been cleared by Oracle Cash Management. If you check this box,
the Cost Payment and Cost Cleared Payment boxes are also checked by default.
Exclude External/Manual Payment: Check this box to exclude any external/manual payments
from costing. This exclusion is useful if you are using this payment method as a dummy payment
method to cancel a previous payment, or if you are making a payment by cash. If you check this
box, the Cost Payment box is also checked by default.
Transfer to GL: Check this box to specify that costed payments should transfer to General
Ledger. If you check this box, the Cost Payment box is also checked by default.
General ledger TAB:
Navigate to the General Ledger tab.

Select Ledger to indicate the ledger to use if you intend to reconcile payments using Oracle
Cash Management
Select the GL Control Account.
Select GL Cash Account to indicate which cash account to use for the reconciliation of
payments
The entry for Description appears automatically by default, depending on what you enter in the
GL Cash Account details.
Select the Cash Clearing Account.
Select the Error Account.
When you first specify the GL accounts for a bank account, these then become the default GL
accounts for any other payment methods that use the same bank account. The defaults apply for
all new payment methods using the bank account. They also apply retrospectively for any
existing payment methods that were already using the same account. However, you can override
these defaults by entering your preferred GL accounts on the General Ledger tab.
At this point, check that your Payroll setup and Cash Management setup are fully integrated.
Costing of Payment process results in Control Account

Cash Account Bank Account this account must match with cash account setup in
bank account payable.
Cash Management TAB:
Confirm that you can reconcile payments in Cash Management

Navigate to the Cash Management tab. You cannot change the information on this tab, but
you can confirm that your GL accounts are correct.
To confirm that Oracle Cash Management is operating with the same source bank account
that you are using in Oracle Payroll, view the check box. If the box is checked, then Oracle
Cash Management holds the bank account for this payment method, and you can reconcile
payments knowing that you are using an identical account in Payroll, and in Cash
Management.
However, if the box is not checked, this indicates that Oracle Cash Management does not hold
the details for your Payroll account. This may indicate that duplicate accounts exist and you
should exercise caution when you reconcile your payments.
Go to Payroll: Description
to assign this payment method to your Payroll
9). Process a Payroll Payment using Cheque Writer or External/Manual

Payment
:
Run Payroll Process:
1-Payroll Run which assigned to our payment method
2-Run Prepayment
3-Run Costing
4-Run Cost Breakdown
5-Run Transfer to SLA
6-Run Create Accounting
10). Navigate to Cash Management Responsibility > View: Available

Transactions and find the Payroll transaction there to confirm that the Payroll
Search by Bank assigned to Payment Method
After Press Find:

3. Does payroll use the GL date entered on the bank reconciliation? If so
how is it used? Is this the date that is used to create accounting of payroll
payments?
->Payroll does not use any data from GL end. Link from payroll to GL is one
way where costing data from payroll side is moved to GL using transfer to GL
process.
For Inquiry:
you can run request CE Responsibility:
Transactions Available to reconciliation Report

Cash Management Responsibility
Reconciliation Process

.
:

Un-reconciled
Press Available:

Choose Payroll Check Box:
and match or reconcile each line in bank statement with each line in cash
management
By Check number and amount:
Make reconcile:
After Reconcile checks status become Reconciled and so on with all checks
Now Return to Payroll Responsibility and run:

1- Costing Request
2- Transfer to GL Request

Accounting Entries
When "Cost Payment" box ONLY is checked:
Page (6)
Costing of Payment process results in

Debit Payroll Control
Credit Cash Account
This approach will clear the Payroll Control account that was credited during the
Costing process. There are no other accounting lines produced after the payment
has been reconciled in Cash Management
"Cost Payment" box AND "Cost Cleared Payment" box is checked:
Page
(6)
Costing of Payment run BEFORE clearing in Cash Management results in
Debit Payroll Control
Credit Cash Clearing
Costing of Payment run AFTER clearing in Cash Management results in
Debit
Credit
Cash Clearing
Cash Account
This approach will clear the Payroll Control account that was credited during the
Costing process, and will create the credit to Cash Clearing. After reconciliation and
running the Costing of Payments again, the amount of cleared payments will move
from Cash Clearing to the Cash Account.
.
Questions && Answers:

Q1: The Payroll Checks are not available in Cash Management for
Reconciliation mostly due to integration issues, rarely due to incorrect
view definitions.
A1:
1). Check the Following set up details at Payroll Responsibility.
2). Check the Payroll Payment method used to run the Payroll is attached with
proper Cash management account. Check the Cash Management tab.
3). Check the effective date value at Payroll Payment. The Transaction date should
fall between effective start dentate and end date of the Payment method.
4). The Business Group assigned to payroll responsibility must be classified as
Operating Unit with proper Ledger Details.
5). check the business group is assigned to the HR: Security profile and HR:
Business Group option for Payroll responsibility
Check the following set up details at Cash Management.

1). The Bank Account Must is Payroll Enabled.
2). Check the Access Account Page at Bank Accounts Page the Organization must be
Business Group As well as Operating Unit.
3). the profile CE: Bank Account Security Access must be set to All or Payroll to
view Payroll Data in CE.
4). The MO: Operating Unit must be set to the same value as the HR: Business
Group and that value must represent the Business Group associated with the
Payroll.
2. If the payroll payments are accounted both at the time of creation and
clearing, how the clearing account is derived and how the entries are
passed for journal entries for payroll payments are passed?
A2. Payments are costed once they are paid from payroll end. These costing
details for payments are passed from payroll for reconciliation. Costing is done
against clearing account during this costing process. Once payment is reconciled,
costing of payments is run for cleared payments and costing is reversed from
clearing account and costed against bank/cleared account.

3. Does payroll use the GL date entered on the bank reconciliation? If so
how is it used? Is this the date that is used to create accounting of payroll
payments?
A3 .Payroll does not use any data from GL end. Link from payroll to GL is one way
where costing data from payroll side is moved to GL using transfer to GL process.
4. Does payroll have periods like AP/AR?
A4.Payroll does have periods. Payments are made in payroll for a specific period
and so are applicable to accounting.
5. Is there any impact if the GL date is allowed to be modified during the
reconciliation of payroll payments?
A5. Payroll shouldn't have any impact to changes in GL side as payroll does not use
data from GL end for any process.
.

CE Payroll Integration

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Prepared by: Mohammed Salah Mahmoud