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Proration Formula in Oracle HRMS Payroll

This document outlines the steps to configure proration in Oracle HRMS Payroll when an employee's salary changes during a payroll period. The steps include: 1) creating an element, 2) creating element links, 3) creating an event group, 4) creating a payroll formula, 5) creating a proration formula, 6) attaching the event group and proration formula to the element, 7) changing the employee's salary, and 8) running payroll to see the prorated salary amounts displayed for the element. Proration allows the payroll to correctly calculate an employee's pay when their salary changes mid-pay period.

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907 views6 pages

Proration Formula in Oracle HRMS Payroll

This document outlines the steps to configure proration in Oracle HRMS Payroll when an employee's salary changes during a payroll period. The steps include: 1) creating an element, 2) creating element links, 3) creating an event group, 4) creating a payroll formula, 5) creating a proration formula, 6) attaching the event group and proration formula to the element, 7) changing the employee's salary, and 8) running payroll to see the prorated salary amounts displayed for the element. Proration allows the payroll to correctly calculate an employee's pay when their salary changes mid-pay period.

Uploaded by

Saquib.Mahmood
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Proration formula in Oracle HRMS Payroll

Usage:

It is a very common requirement in Oracle payroll, that when a specific event occurs, e.g. Salary change, Salary of
that particular period should be prorated.

Steps:

1) Create an element

2) Create Element Links

3) Create an Event Group

4) Create a payroll formula

5) Create a formula of type 'Payroll Run Proration'

6) Attach Event group and Proration formula to element

7) Salary Change

8) Run Quick pay or Payroll

Step (1) Create Element

Step (2) Create Element Link

Change element link criteria accordingly.


Step (3) Create Event Group

Update Type Table Column Name

Datetrack Update PAY_ELEMENT_ENTRIES_F EFFECTIVE_END_DATE


Datetrack Update PAY_ELEMENT_ENTRIES_F EFFECTIVE_START_DATE
Datetrack Update PER_PAY_PROPOSALS PROPOSED_SALARY_N

Step (4) Create a Payroll formula


DEFAULT FOR ASG_SALARY IS 0
DEFAULT FOR PAY_PROC_PERIOD_START_DATE IS '4712/12/31 00:00:00' (DATE)
DEFAULT FOR PAY_PROC_PERIOD_END_DATE IS '4712/12/31 00:00:00' (DATE)

RESULT = ASG_SALARY
START_DATE = PAY_PROC_PERIOD_START_DATE
END_DATE = PAY_PROC_PERIOD_END_DATE

RETURN RESULT, START_DATE , END_DATE

Step (5) Create a Proration formula

INPUTS ARE BASIC_SALARY,


PRORATE_START(DATE),
PRORATE_END(DATE)

DEFAULT FOR PAY_PROC_PERIOD_START_DATE IS '01-JAN-0001' (DATE)


DEFAULT FOR PAY_PROC_PERIOD_END_DATE IS '31-JAN-4712'(DATE)
L_PERIOD_START(DATE) = PAY_PROC_PERIOD_START_DATE
L_PERIOD_END(DATE) = PAY_PROC_PERIOD_END_DATE
L_TOTAL_DAYS = DAYS_BETWEEN(L_PERIOD_END,L_PERIOD_START) +1

L_WORKED_DAYS = DAYS_BETWEEN(PRORATE_END,PRORATE_START) +1

PAY_VALUE = (BASIC_SALARY/L_TOTAL_DAYS) * L_WORKED_DAYS

START_DATE = PRORATE_START

END_DATE = PRORATE_END

RETURN PAY_VALUE , START_DATE , END_DATE

Step (6) Attach Event group and Proration formula to element

Step (7) Salary Change

Global HRMS Manager --> People --> Enter and Maintain --> Assignment --> Salary
Step (8) Run Quick Pay

Two element will be shown in Run results. Oracle splits the element execution on change date.

Element 1

Element 2
So we achieved our goal. Hope you enjoyed the post.

HRPH.EFFECTIVE_START_DATE AND HRPH.EFFECTIVE_END_DATE

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