HRMS Payroll

Payroll Setup Steps –

1) Consolidation set-

Consolidation Sets in Oracle Payroll are used to group the results of multiple payroll processes for further
processing.They allow you to consolidate the outcomes of various payroll runs into a single action, which
is particularly useful when you need to produce one set of reports, one tape per payment method, or
one set of costing for several payrolls.

A consolidation set is automatically created when you create a business group and classify it as a HR
organization with the same name as the Business group.

Navigation – Payroll: Consolidation

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2) Payment Method –
Define Payment Method for your business group.

Navigation – Payroll: Payment Methods

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3) Payroll Description

Navigation – Payroll: Description

 In the Date Offset region, you can change the zero default to a negative or positive number
of days before or after the period end date. For example, for a semi-monthly payroll, the Cut
Off date can be 3 days before the period end date (-3), while the Scheduled Run and Check
dates can be 5 and 7 days after this date, respectively.

o The Check Date, sometimes called Pay Date, is the date of constructive receipt of pay,
on which paychecks become negotiable.

o The Scheduled Run Date is the date scheduled for the Regular run of this payroll each
period.

o The Cut Off date, included for your reference, is the final date for entering or changing
payroll information before a run.

These offsets are the defaults for the calendar. You can manually make date changes in the
calendar, for example when an offset date falls on a weekend or holiday, by choosing the Period
Dates button.

 Select a default payment method for employees who have no valid personal payment
method. You cannot select a method using magnetic tape because this requires information
about employees' bank accounts.
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Note: An employee assigned to this payroll can have any number of personal payment methods
chosen from those you enter here for the payroll.
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4) GL Flexfield Map –

General Ledger (GL) flexfield mapping in payroll is crucial for integrating payroll data
with the financial accounting system. The Cost Allocation Key Flexfield (KFF) is used
to accumulate employee costing information. When setting up the Cost Allocation
KFF, you should ensure that at least one segment maps onto segments of the GL
Accounting Key Flexfield.

This integration ensures that payroll expenses are accurately reflected in the organization’s financial
statements.

Navigation – Payroll: GL Flexfield Map

Ensure that the segments in the Cost Allocation KFF correspond to the segments in
the GL Accounting Flexfield.

This allows for the seamless transfer of payroll costs to the General Ledger
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5) Monetary Units –

Navigation – Payroll: Monetary Units

6) Conversion Rate Types-

Navigation – Payroll: Conversion Rate Types

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7) Daily Rates-

Navigation – Payroll: GL Daily Rates

8) Element Description-
These are the components of the salary.

Navigation – Total Compensation: Basic: Element Description

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9) Element Link –

Navigation – Total Compensation: Basic: Link

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10) Salary Basis –

Navigation – Total Compensation: Basic: Salary Basis

11) Balances –

A balance represents the accumulation of results from payroll calculations. These balances play a crucial
role in tracking various aspects of an employee’s compensation, deductions, and other related data.

o A balance is associated with a specific payroll element (such as earnings or deductions).

o It reflects the total value accumulated over a defined period (e.g., month, quarter, year).
o Balances can be positive (additive) or negative (subtractive).

There are balance feeds and balance dimensions.

Balance Feeds:

o Definition: Balance feeds define the input values that contribute to a specific balance.
o Example: For the “Gross Pay” balance, the pay values of all earnings types contribute to it.

Balance Dimensions:

o Definition: The balance dimension identifies the specific criteria for viewing the balance value.
o Examples:_YTD indicates the balance value for the year to date.
_PTD indicates the balance value for the current pay period.

Navigation – Total Compensation: Basic: Balance

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12) Global Value Setup-

Global values in Oracle Payroll serve as variables used within formulas. They store information that
remains relatively constant and is frequently referenced.

Global values are placeholders for data that doesn’t change often but is commonly used.

Navigation – Total Compensation: Basic: Global Values

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13) Table Structure-

Navigation – Other definitions: Table Structure

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14) Table Values-

Navigation – Other definitions: Table Values

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15) Formula Functions-

You can use external functions as well in oracle payroll for calculations.

External Functions:

Definition: External functions are additional PL/SQL functions that you can create and use alongside the
predefined functions delivered with Oracle FastFormula.

Purpose: They allow you to extend the functionality of FastFormula by implementing custom logic
specific to your organization’s requirements.

Navigation – Other definitions: Formula Functions

Ex-