Payroll Management Assignment

Index

1. Introduction to Payroll management

2. Manage Key Flexfield
a. People Group Segment
b. Cost Allocation Group
3. Legal Structures
a. Legal Entity - Legal Employer, PSU, LDG (Manage Legal
Entity task defined in Core HR)
b. Legal Jurisdiction
c. Legal Authorities
d. Legal Reporting Unit/Tax Reporting Unit
e. Legal entity registration
f. Legal reporting unit registration
g. Legal reporting unit HCM Information
4. Configure Pay Legislations
5. Features country or territory & Enable payroll licences
6. Manage Banks
7. Manage Bank Branch
8. Manage Bank Accounts
9. Organisation Payment method
10. Manage Third Parties(Person & Organization)
- Manage Third Party Payment method
11. Consolidation Groups
12.Payroll definition
13.Elements (Elements creations,classifications,Input values, eligibility
profiles)
14. Balance definitions
15. Event Groups
17. Salary basis
18. Object Groups
19. Legal entity calculation cards
20. End user transaction
Introduction to Payroll management

Oracle Payroll. Simplify how you pay your workforce with a highly configurable
solution, fully unified with Oracle Fusion Cloud Human Capital Management (HCM)
for efficient, compliant payroll processing across the globe—no matter your industry,
company size, or worker types.

Tasks - Manage Key Flexfield

Types of Key Flexfield
1. People Group Flexfield
2. Cost allocation Flexfield

1. People Group Flexfield

In order to capture multiple information at one place is called People
group flexfield. PPG is enabled at Enterprise/Legal Entity level.

Requirements:
Step-1 Manage structure in PPG (People Group FF)
Step-2 Manage structure instance in PPG
Step-3 Deployment

Based upon the requirements,

If we want to create and enable the PPG for enterprise level, applicable
to globally.. If we want to create and enable for a Legal entity level, it's
applicable to the appropriate LE.

For Enterprise level segment requirement- Reliance

A. Trade Union- Yes/No
B. Trade Union Worker Name- Worker Union 1, Worker Union 2,
Worker Union 3
C. Work Location- Head office/Factory
D. Housing rental allowances
E. Mobile Allowances
F. Food Allowances
G. Transportation allowances

For LE level segment requirement- Reliance Polyesters India Pvt Ltd

H. Trade Union- Yes/No
I. Trade Union Worker Name- Worker Union 1, Worker Union 2,
Worker Union 3
J. Work Location- Head office/Factory
Search Manage key flexfield- Give a blank search- you will get results
which includes our HCM key flexfields are People Group Flexfields and
Cost Allocation Flexfields

Go to Manage structures
Specify the Structure code, Name, Description, Delimiter- (pick any
symbol which is applicable for bifurcate the values)
And Give Save
After gave the save- + create will be enable (Create Default Value set in
Manage table value set task)

Likewise create the structure and value set as per the requirement
Manage Structure Instances

Specify the Name, code and select the structure name

Select edit option- manage optional, required, displayed

For LE level segment requirement- Reliance Polyesters India Pvt Ltd

K. Trade Union- Yes/No
L. Trade Union Worker Name- Worker Union 1, Worker Union 2,
Worker Union 3
M. Work Location- Head office/Factory
For Example- If Reliance polyesters pvt ltd has a requirement only
need the segment of Trade union available, Name, Work location.
Create a new structure instance in the name of Reliance polyesters
PPG structure instance with the reference of created ppg structure,
select it and make it displayed off the Housing Phone allowances.
 Step-3 Deploy Flexfield

Enable of Structure Instances in Enterprise level-

After deployment- sign out and in the instance- Go to set up &
maintenance- workforce deployment and search Manage HCM
enterprise information- Correct (Edit)- Enterprise Information- People
group flexfield structure and select the created structure instances.
Cost Allocation Key Flexfield-

The cost allocation key flexfield creates a structure for the financial accounting of the
payroll costs.

The flexfield captures the account codes you use to create accounting entries, and to
report and track your labor costs. Consider all aspects of the flexfield and its uses
during your planning.

This group is enabled at LDG. Cost Allocation Group has a hierarchy is as

follows
Account Number Built - Hierarchy
1. Payroll
2. Element Eligibility
3. Department
4. Job or Position
5. Person Payroll relationship
6. Person Payroll Assignment
7. Person Element
8. Element Entry

Cost Allocation Flexfields

Segment/structure KFF should be taken be from Oracle Financials’
Accounting flexfields

1. Company/LEs- (Reliance Telecom Pvt Ltd or Reliance textiles) & its

Value set code such as 01,02 or anything defined in the financials- The
number denotes the company code
2. Cost Centre- (Reliance Telecom- Texas ; Reliance textiles- California) &
Value set code such as 50,102 or anything defined in the financials- The
number denotes the Cost centre code
3. Account Number- Cost virtual Account which will be maintained not a
bank account.
4. Project Code- (Project X & Project Y) & Value set code such as 2343,
1283 or anything defined in the financials- The number denotes the
Project code
5. Product- (Sim,Broadband, Dth) & Value set code such as 50,102 or
anything defined in the financials- The number denotes the Cost centre
code
6. Future 1- Create it for future structure use (Recommended)
7. Future 2- Create it for future structure use (Recommended)

The segments are to be enabled at hierarchy level.

Step-1 Create Structure
Go to Set Up & Maintenance- compensation management- search Manage
Key flex fields- give a blank search- select Global Payroll Cost allocation
Flexfield-create a new structure - Give save

After giving the save- Create + new segment- Save & close

Likewise create for other segments and add it in the instances

Step-2 Manage Key Flexfield Structure Instance

Step-3- Deploy the flexfield
Enable the KFF structure instances in Oracle seeded LDG/custom LDG

Note- If clients have multiple requirements of structure instances, based

upon the requirement create the instances and display the required
structures and enable it in the Custom LDG.

Legal Structures:
Legal Entity- Legal Employer, PSU and LDG

Manage Legal Entity- Already Created in the Core HR

Specify the LDG in Manage Legal Entity HCM Information

Task - Legal Jurisdiction

All the Legal Jurisdiction are oracle delivered in the instances. For example, If
you take the US LDG- Already system has predefined the predominant Tax
categories in order to the territory. If a new tax has been added in a country,
then we can create a new Legal Jurisdiction in the task.

Legal Jurisdiction is a combination of Legislative category and Territory.

Note- Prior to configure Check what are the taxes eligible(legislative category)
to the employees in a territory.
Example- United states Income Tax, India Income tax
Identifying- Yes (in order to show the legal jurisdiction at front end of the legal
entity)
Task- Legal Authorities

A legal authority is a government or legal body that's charged with powers to make
laws, levy and collect fees and taxes, and remit financial appropriations for a given
jurisdiction.

For example, the Internal Revenue Service is the authority for enforcing income tax
laws in the United States. In some countries, such as India and Brazil, you're
required to print legal authority information on your tax reports. Legal authorities are
defined in the Oracle Legal Entity Configurator. Tax authorities are a subset of legal
authorities and are defined using the same setup flow.

Legal authorities aren't mandatory in Oracle Fusion Cloud Human Capital

Management (HCM), but are recommended and are generally referenced on
statutory reports.

Note- Oracle delivered the legal authorities for some countries only, If want to
create, perform the task in manage legal authorities

Configure the Legal Jurisdiction in the Legal authorities. Like Define the
United state Income tax is collected at which Legal authority.

Tax Authority type- Collecting and reporting usually give

Legislative category- select and add the legal jurisdiction which are comes under the
respective legal authority
Task- Legal Reporting Unit/Tax Reporting Unit

A legal reporting unit (LRU) is the lowest level component of a legal structure that
requires registrations. It groups workers for tax and social insurance reporting or to
represent a part of your enterprise with a specific statutory or tax reporting obligation.

LRU is a group of workers for tax maintained in the enterprise, it will be automatically
created in the system while creating a Legal entity.

For example-
1. Scenario-1 Single LRU- Income tax, professional tax, etc all Legal jurisdiction
are handled under 1 roof in the enterprise.
2. Scenario-2 Multiple LRU- Income tax, Professional tax, etc Legal jurisdiction
maintained by the separate units. Income tax will be handled by a LRU,
Professional tax will be handled by different LRU in the enterprise

Based upon the above client business requirement, if they asked to handle under a
roof then go with by default system created LRU against the LE or if they want to
create separate LRU for each tax jurisdiction, perform the task in Manage Legal
reporting unit and create a new LRU & Manage hcm information

For, Scenario-1 Go to set up& maintenance- search manage legal reporting unit
task- select the legal entity & Legal reporting unit- select and add- check the the LRU
- save & close
Scenario-2 : Multiple LRU Create and add - Save & close

Task- Manage Legal Entity Registration

Go to setup & maintenance- search a task manage legal entity registration- by
default it will be registered after creating the legal entity.

Click edit and assign the issuing legal authority and give save & close

Task- Manage Legal Reporting Unit Registration

Go to setup & maintenance- search a task manage legal reporting unit
registration- by default it will be registered after creation the LRU.then edit-
select the issuing legal authority. If we added multiple LRU- do the same of
select the issuing legal authority and give save & close

Task- Manage Legal Reporting Unit HCM information

Go to setup & maintenance- search a task manage legal reporting unit HCM
information- select the legal entity
Enable the
Tax reporting unit- collect the taxes Tax
Reporting establishment- use for reporting purposes
Click next
Select the legal employer- submit (No required to capture all the details here,
in employee hiring we can capture)

Configure Pay Legislations:

Oracle delivered payroll for some countries by default in the application which
payroll for the countries are recommended to configure in the application.
If clients from Sri Lanka are not available by default but they want to configure
the payroll in oracle, let's take an approval from oracle and configure it.

Go to set up & Maintenance- workforce deployment-Task: Configure payroll

legislations
We can see here, what are payrolls in order to the country by default
configured in the oracle.

Features By country or Territory

Enable the Payroll licences for the respective country- Select Payroll then the
segments will be enabled in elements ; Payroll interface if selected the payroll
is interfacing from third party

Task- Manage Banks

Manage the Banks in order to the legal entity.
Go to set up & maintenance- Workforce deployment- Search a task Manage
Banks- Specify the bank name, addresses, contacts
Task- Manage Bank Accounts
A single bank account could assign into 1 LE, and
Multiple bank accounts could assign into 1 LE

If the LE is not showing in the bank accounts, finance team needs to enable
the bank accounts to LE, after than we can select our LE in the manage bank
accounts
Assign LE- Us Primary ledger (created by finance)- + add the LE - Apply &
done
Account use- 3 options can select (Payables, Payroll, Receivables)

Manage the Bank accounts in order to the legal entity.

Go to set up & maintenance- Workforce deployment- Search a task Manage
Bank Accounts- Specify the bank branch name, addresses, contacts
Task- Manage Bank Branch
Manage the Banks in order to the legal entity.
Go to set up & maintenance- Workforce deployment- Search a task Manage
Bank Branch- Specify the bank branch name, addresses, contacts

Task- Organization Payment Method

Payment method- Cash, Cheque, EFT
Go to workforce deployment- search a task Organization Payment method
Payment Source Information
Specify the Payment method name, Bank account number- continue- save &
close

Task- Manage Third Parties

Home- My client groups- Quick actions- Payroll- Third parties
Party Type- Person (employee’s dependent) & organisation(PF, ESIC
Organisation

If selected Person - specify the dependent name of the employee and address
If selected organization - specify the PF/insurance name,and address

Task- Thirty Party Organization Method

If Person or organization selected- add the person name & details or

organization details payment method- submit
Task-Consolidation Group
In order to group the similar payroll under one category, which can create the
consolidation group and we can map all the similar payroll in one category.

Go to Set up and maintenance-W.F.D- search a task- consolidation groups- +

add the group for Supremo Bank LEmonthly, weekly, biweekly based upon the
requirement, specify the LDG, Save & done

Task- Payroll Definition

First to know the requirements of the client, what frequency the payroll is
processing to their employees. Monthly/ Biweekly/weekly

Go to set up and maintenance- W.F.D- Search task Payroll definition- +create

payroll for monthly/bi weekly/ weekly
Specify the name, consolidation group, period type, ledger, First Period end
date (First payroll enrollment date from this instance, date should be get from
the client),
Allow negative payments is enabled(if an employee salary is 500 USD, Loan
is 200 USD. But the employee is LOP for the month of 20 days, then the
amount will be adjusted from the next month payout)
Default Payment method- Cheque/Direct payment (If a new employee doesn’t
have bank account/in process of account opening on that time cheque can be
selected)
Select the organization payment method which we created - give next

Number of years- 10 or 20 years (upcoming years)

Fixed date- Yes/No
If yes
Cut off date- (A trigger date for performing to the HR for Payroll in a month to
add/deduction of amount)
Date earned- elements can be modified in any date before 31st
Payroll run date- On which date payroll want to run
Date paid- Salary paid date
Payslip availability date- Payslip generation and access date to employees
Planned submission date- scheduling the payroll processing date

If fixed date given NO- Specify the falls in days, offset Before/after/on to the
period end/start date

Next- Next 10 years payroll slot has been created and next
Cost allocating payroll will see later session when run the payroll- and give
submit

Likewise create payroll definitions for weekly/biweekly.

Task- Elements
Building blocks for the payroll to process

Elements classifications are changing depending upon the LDG.

For example
US Legal Entity/ US LDG
-Standard Earnings - Basic salary, HRA, Transport, food, allowance
-Supplementary Earnings- Bonus, overtime, shift allowance
-Voluntary Deductions- Loan recovery, union dues, Insurance premium
-Involuntary deductions- Bankruptcy orders, Garnishments, child support order
-Information - some credit points/amount related, flight ticket reimbursement
-Absence - Absence related

What are the Types of Element classifications?

1. Recurring and 2. Non recurring

Go to set up & maintenance-WFD- Search a task Elements- Select the LDG-

Select the elements’ primary classification (For example & practice selected
Standard earnings) , Category- Standard/time card(OTL); Selected standard -
continue
Specify the Name(in this demo instance mentioned US 1 LE for identification),
Reporting Name & description, effective start date, input currency

Durations-
Should every person eligible for the element automatically receive it?
Yes- Whenever the HR hiring a new employee, the element will be automatically eligible to the
employee after we created the eligibility profile for this element.
No- HR needs to manually add this element (Recommended)
What is the earliest entry date for this element? First standard earning date
What is the latest entry date for this element?
Final close - elements process at the time of FnF settlement

Last standard process date - Last date of the payroll process date in a month (processed till
month end, if employee terminate on mid of the month)
Last standard earning date- Last date of the earning date in a month and applicable to
termination employee’s last date of the employment

At which employment level should this element be attached?

Assignment level/term level - Assignment level

Does this element recur each payroll period, or does it require explicit entry?
Recurring/non recurring- recurring

Process the element only once in each payroll period?

Yes/no- Yes

Can a person have more than one entry of this element in a payroll period?
Yes/No- Yes

Process and pay element separately or with other earnings elements?

Process and pay with other earnings - Enable (Recommended)
Process separately, but pay with other earnings
Process separately and pay separately
Next
What is the calculation rule?
Flat amount
Factor
Percentage of earnings
Hours * Rate

What is the default periodicity of this element?

For monthly payroll- select Calendar month

Periodicity Conversion Rule - Standard rate annualized

How do you want the work units to be reported? - Hours /none

Hours- for hours rate payroll calculation
Select none for others calculation
Work Units Conversion Rule -Standard rate annualized
Special rules
Is this element subject to proration?
Yes- The element is calculated in proration rule for the month
No- Flat calculation for the month
Proration Group- Entry Changes for Proration
Proration Units- workday
Proration Rate Conversion Rule- Standard Rate Annualized

Is this element subject to retroactive changes?

Yes- If the earnings amount is increased from the previous month, the previous month’s
increased amount to be processed from the current month then give YES.
No- no changes of retroactive

Retro Group- Entry Changes for Retro

Give Submit and the element is processing.

After the elements comes to active

Click the element eligibility- go to actions- Create element eligibility
Specify the eligibility Profile name, enable/disable automatic entry for
automatic entry, If you want to enable at LE, Dpt,Job, grade, location,
employment category,ppl group, position, payroll,barganing unit, collective
agreement, union member level.
Enable it by specifying the values.
If enable all payroll eligible then it would be enable to all levels

If you want to manage the input values to be display/hide- go to edit- correct-

select the value and disable the display
Supplementary Earnings
For example - Bonus
Select Supplemental earnings in the classification
Information Earnings - For example Air Ticket earnings
(Input values to be created manually at information earnings after creating the
element)
Select the Information of element classification- and fill the attributes as per
the requirements- Next & submit
Select input values- action:creation input values

Create input value -submit and then create element eligibility

Create Element Eligibility for Air ticket value

Tasks- Balance Definitions

Balance Groups in HCM are amounts or hours that are aggregated based on Month,
Quarter or Year. Balance Group and Balance Group Usages for the specific
Balances can be created from the Payroll Calculation work area in the Oracle Fusion
HCM environment.

Balances feed are seeded by the oracle for the elements so no need to create
If want to create a custom balances definition for like Information earnings(For
example- Air ticket), since no balance feeds for the element- go to set up and
maintenance- search a task balance definitions
Specify the Name, Reporting name, Balance category, Unit of measure, currency,
Element name and input value - next

From the previous screen- Balance dimensions- Actions- select and add- give a
blank search- select All - apply and done - Next
Balance feeds - select the element and input value and the effective date is from
01/01/52. If not don't select the element,leave it blank- just give submit and add
balance feeds in the information category element

In the Element screen add the balance feed (with mentioned effective start
date 01/01/51) & submit
Task- Event Group (Retro and Proration)
Oracle by default will provide the event group, if needed we can customize the
event group.
Event Group is used to what action has been done at the front end by the HR,
the event has been updated.

Go to my actions- quick actions- see more- event groups- go to event groups

Search by LDG- Click entry changes for proration or retro

We can add what are the attributes we need + create and add -submit

Usually we will go with the oracle seeded group only.

Task - Salary Basis

Assign the Basic salary element to configure in the salary basis task at grade
rate.

You define a salary basis in the Salary Basis window.

To define a salary basis:

1. Enter a name and select a basis.
2. Select the name of the salary element and input value associated with this
salary basis.
3. Optionally, select a grade rate to associate with the salary basis.
Oracle HRMS uses the grade rate to validate your salary proposals. You
receive a warning if the salary you enter for an employee is not within the
grade rate range defined for the employee's grade.
In doing this check, the system takes account of the hours in the employee's
standard work week. It compares the hours on the employee's assignment
with those entered for his or her organization.
If the employee works fewer than the standard hours per week for the
organization, the system prorates the permissible minimum and maximum
grade rate values before validating the salary.
4. If you selected a grade rate, select the Basis (Hourly, Monthly, Annual, or
Period) for the rate. For example, if your grade rate specifies the valid monthly
salary ranges for each grade, select Monthly Salary in the Grade Rate Basis
field.
5. If either the Basis or the Grade Rate Basis is Hourly Salary (but not both),
you must enter a value in the Annualized Hours field. This records the number
of working hours in a year (and hence in a month). The system uses this
figure to convert salary entries and grade rate values to the same basis when
it validates a new salary entry.

My client group- search a task salary basis

+Create a salary basis for Monthly payroll- specify the Name, status, LDG,
Salary basis type ultimately proceed with salary amount is determined by user,
frequency and other amount rounding rule
Element mapping- Map the basic salary element and the input value as
amount

Assign the garde rate in the salary ranges for this monthly payroll salary basis-
Save & close
Task- Object Groups
Object Groups are user-defined sets of elements or people that restrict the items that
are included in various processes and reports. It is a mechanism by which you can
set up a definition to retrieve an appropriate set of entities (elements or people)
which would be used for payroll calculation or other processes.

1. Payroll Relationship Object groups

2. Work relationship Object groups
3. Element object group
Example for the task- If a group of employees in resignation, salary to be held
during the notice period. Or we can create multiple group based on
requirement in Payroll relationship object groups( by person number), work
relationship object group (by worker relationship number) , element object
group (element level group)

Go to my client groups- search a task object groups

+Create object group and specify a group name, select LDG, type, static,
dynamic (fast formula)
Add any payroll relationship, term, or assignment
Select the Payroll relationship - person number and inclusion status (include
for salary process) (exclude for not the salary process)

Save & submit

Tasks- Legal Entity Calculation Cards
Assign the calculation cards at PSU (LE)
The tax are delivered by oracle.Just configure the needed taxes.
Go to set up & maintenance- search a task Legal Entity Calculation cards

Select the federal, regional, benefits taxes which are any needed- save and
close

Want to add another tax + add taxes- save and close

Task- End user Transaction at person management

Pre Payroll Process

1. Attach the payroll - (Payroll relationship tab)
2. Attach the Salary basis - (Change salary tab)
3. Attach the elements- (Elements entries tab)
4. Provide Personal Payment method- (Add employee bank A/C)
5. Calculation cards- (Calculation cards tab)
-Quick Pay- Simplified Quick pay task if to run for an employee
-Run retroactive notification report- Task: Submit a flow and
search
-Recalculate Payroll for retroactive changes report- Task: Submit a
flow task
6. Calculate Payroll- Task: submit a flow - Bulk process of run the
payroll
-Reports to generate - Task : submit a flow task
- Run elements register report
- Payroll register report
- Run payroll activity report
- Payroll balance report

Post Payroll Process

7. Calculate prepayment ( Map Org. payment method- Person
Payment method) - Task: Submit a flow
- Payment Register report
- Payroll costing report
8. Archive periodic payroll results (Task: submit a flow)
9. Make EFT Payments- (Bank file will generated- finance team will
process)
10. Generate check payments- Writer file will generated- finance
team will process
11. Generate payslips
Task if any discrepancies in the reports : Roll back- roll back process
sequence from last to first
& Task- Roll back process

Go to person management of my client group- search a US LDG based

person
1. Attach payroll - Payroll relationship tab
Effective start date is hire date of the employee
Add the payroll in assignment section- save
 2. Attach salary basis- (Change salary tab)

Propose new salary- select and add the created salary basis- continue and
save
 3. Attach the Elements ( Element entries tab)

Add the elements of Basic, HRA, Travel, other allowances, Absences element
related entries ; Add the each element and specify the entry values in amount
for each element and give save
 4. Provide Personal Payment method ( Go to the tab and add
employee bank account)

Create Personal Payment method

Add bank account of employee - save and close

 5. Calculation cards ( Calculation cards tab)
Add the calculation cards and save & close

Quick Pay- To run the payroll for an employee can achieve the task in
simplified quick roll in person management.

Go to my client groups- payroll- task is Simplified quickpay- Search the person

name- check the elements and payment- Submit
Quick Payroll run processed
Next screen automatically in Statement of Earnings to check the values

Or go to person of results task in the payroll

Actions
Roll back- Roll back the payroll
Mark to retry- Retry to run the payroll
Reversal- The payroll run is reversed
If any promotion is given to the employees- go to element entries for the
employee and make it update the salary with effective date of promotion

-Run retro notification report- Task: Submit a flow and search

Select the payroll and fill other attributes and submit then the report will be
generated

-Recalculate Payroll for retroactive changes report- Task: Submit a flow

task- submit and the report will be generated
 (After make changes in the salary then recalculate payroll report has to
be run)

After run the recalculate payroll

Calculate payroll- Bulk run for the employees

Fill the attributes and submit

In process of calculate payroll and status changes- complete