Sample Setup for Case Scenarios in Oracle

Payroll - Loan
The aim of this post is to provide sample case study for beginners in Oracle Payroll. This case study
will take you through the real time requirements in payroll for UAE legislation. In further posts we will
be dealing with scenarios related to costing and resolution for issues during payroll support.

Note: All setups are effective 01-Jan-1951

1. Loan Setup

Case: In your organization, an employee is eligible to apply for a loan. Now the administrator will
determine the number of installments required to recover this loan. This loan is internal and does not
require payment to be made to a third party.Let us keep it very simple. Oracle Payroll by default
provides elements for Handling Loans. You may use these or create you own, as I have done for
simplicity sake.

Approach: You need a non-recurring element, something that the admin will add in the element entries
to say that in this run the loan is to disbursed to the employee. Then recurring elements for deducting
the installment in subsequent runs until the entire amount is repaid. Also the corresponding balances
need to be created. Then we write the fast formula for processing the loan and validations if any. Define
the formula result. Go to the element entry screen add the loan element and run the quick pay to check
our setup.

Element and Balance Setup: Total Compensation>Basic>Element Description

Total Compensation>Basic>Balance
___________________________________________________________________________________
Element
Loan
Amount
Classificatio
Earnings
n
Recurrin
Type
g
Last
Termination
Standing Loan Repayment
Rule
Process
Other Process
Options in Run
Priority 7552
Pay
Input Values
Value

Element
Classification Voluntary Deductions
Type Recurring
Termination Rule Last Standing Process
Other Options Process in Run Once in Each Period
Priority 7550
Number of
Input Values Loan Amount(Money)
Installments(Number)

Element Loan Outstanding

Classification Earnings
Type Non-Recurring
Termination Rule Last Standing Process
Other Options Process in Run Indirect Result
Priority 7561
Outstanding
Input Values
Amount(Money)

Balance Loan
Feeds Loan Repayment(Add)
Assignment Inception to Element Entry Inception
Dimension Assignment Run
Date to Date

___________________________________________________________________________________

Total Compensation>Basic>Write Formula

Fast Formula: Loan Calculation
Type: Oracle Payroll

DEFAULT FOR PAY_PROC_PERIOD_START_DATE IS '1951/01/01 00:00:00' (date)

DEFAULT FOR PAY_PROC_PERIOD_END_DATE IS '4712/12/31 00:00:00' (date)
DEFAULT FOR EMP_HIRE_DATE IS '4712/12/31 00:00:00' (date)
DEFAULT FOR AMOUNT is 0
DEFAULT FOR STOP IS 'NO'
DEFAULT FOR LOAN_OUTSTANDING IS 0
DEFAULT FOR LOAN_INSTALLMENT IS 0
INPUTS ARE LOAN_AMOUNT,NUMBER_OF_INSTALLMENTS
IF LOAN_BALANCE_ASG_ITD = 0 AND PAY_PROC_PERIOD_START_DATE =
ENTRY_START_DATE THEN
(
LOAN_OUTSTANDING = LOAN_AMOUNT
MSG = 'Loan is disbursed'
RETURN LOAN_OUTSTANDING,LOAN_AMOUNT,MSG
)

IF LOAN_AMOUNT - LOAN_BALANCE_ASG_ITD >0 THEN

(
LOAN_INSTALLMENT = LOAN_AMOUNT/NUMBER_OF_INSTALLMENTS
LOAN_OUTSTANDING = LOAN_AMOUNT - LOAN_BALANCE_ASG_ITD -
LOAN_INSTALLMENT
IF LOAN_OUTSTANDING > 0 THEN
(
MSG = 'Loan Recovery in progress'
RETURN LOAN_OUTSTANDING,LOAN_INSTALLMENT,MSG
)
ELSE
(
MSG = 'Loan recovery completed'
STOP ='YES'
RETURN LOAN_OUTSTANDING,MSG,STOP
)
)

Formula Result: Total Compensation>Basic>Formula Results

Now we go to the employee assignment screen and add the entry as shown.Loan Repayment entry for
employee in Feb

Note: This has already been processed, hence the check and end date.
Quick Pay Results: People>Enter and Maintain>
1.Select the employee
2. Click on Assignment
3. Click on Others
4. Click on Quick Pay

February:
March:
July: