Oracle Payroll Admin Guide

8/19/2019 Oracle Payroll Admin Guide

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R12.x Oracle Payroll

Fundamentals: Configuration

(Global)

Activity Guide

D60571GC10

Edition 1.0

March 2010

D65980


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Copyright © 2007, 2009 Oracle. All rights reserved.

Disclaimer

This document contains proprietary information and is protected by copyright and other intellectual property laws. You may copy andprint this document solely for your own use in an Oracle training course. The document may not be modified or altered in any way.Except where your use constitutes "fair use" under copyright law, you may not use, share, download, upload, copy, print, display,perform, reproduce, publish, license, post, transmit, or distribute this document in whole or in part without the express authorizationof Oracle.

The information contained in this document is subject to change without notice. If you find any problems in the document, pleasereport them in writing to: Oracle University, 500 Oracle Parkway, Redwood Shores, California 94065 USA. This document is notwarranted to be error-free.

Restricted Rights Notice

If this documentation is delivered to the United States Government or anyone using the documentation on behalf of the UnitedStates Government, the following notice is applicable:

U.S. GOVERNMENT RIGHTSThe U.S. Government’s rights to use, modify, reproduce, release, perform, display, or disclose these training materials are restrictedby the terms of the applicable Oracle license agreement and/or the applicable U.S. Government contract.

Trademark Notice

Oracle is a registered trademark of Oracle Corporation and/or its affiliates. Other names may be trademarks of their respective

owners.

Author

Swathi Mathur

Technical Contributors and Reviewers

Bob Oganovic

This book was published using: Oracle Tutor


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Copyright © Oracle 2009. All rights reserved.

R12.x Oracle Payroll Fundamentals: Configuration (Global) Table of Contentsi

Table of Contents

R12.x Payroll Fundamentals: Configuration Practices and Solutions........................................................1-1 R12.x Payroll Fundamentals: Configuration .................................................................................................1-3 Objectives......................................................................................................................................................1-4

Payroll Configuration - Introduction .............................................................................................................1-5 Payroll Configuration Fundamentals.............................................................................................................1-6 Defining Payrolls for Your Organization ......................................................................................................1-7

Practice: Defining Payment Methods ........................................................................................................1-8 Solution: Defining Payment Methods........................................................................................................1-10 Practice - Defining Consolidation Sets......................................................................................................1-15 Solution: Defining Consolidation Sets ......................................................................................................1-16 Practice: Defining a Payroll.......................................................................................................................1-17 Solution: Defining a Payroll ......................................................................................................................1-20

Maintaining PAYE and NI (U.K. only).........................................................................................................1-25 Practice: Entering NI Details for a Company Director ..............................................................................1-26 Solution: Entering NI Details for a Company Director .............................................................................1-27 Practice: Entering PAYE Details for an Employee ...................................................................................1-29 Solution: Entering PAYE Details for an Employee...................................................................................1-30 Practice: Entering NI Details for an Employee..........................................................................................1-31 Solution: Entering NI Details for an Employee.........................................................................................1-32

Maintaining Other Deductions (U.K. Only) ..................................................................................................1-35 Practice: Maintaining Student Loans.........................................................................................................1-36 Solution: Maintaining Student Loans ........................................................................................................1-37 Practice: Maintaining Tax Credits .............................................................................................................1-38 Solution: Maintaining Tax Credits ............................................................................................................1-39

Costing Overview..........................................................................................................................................1-41 Processing Costs............................................................................................................................................1-42

Guided Demonstration - Previewing Cost Allocations..............................................................................1-43 Practice - Allocating Costs ........................................................................................................................1-44 Solution - Allocating Costs........................................................................................................................1-46

Payroll Configuration - Summary .................................................................................................................1-58


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R12.x Oracle Payroll Fundamentals: Configuration (Global) Table of Contentsiii

Preface

Profile

Before You Begin This Course

• Working experience with Oracle Applications

• Working experience with earnings and deductions elements in Oracle HRMS

Prerequisites

• D48180GC10 R12 HRMS Total View

• D60573GC10 R12 Compensation Management Fundamentals: Earnings andDeductions

• D47341GC10 R12 Compensation Workbench and Salary Configuration

• D17308GC10 11i Compensation Management Fundamentals: Earnings and Deductions

How This Course Is Organized

This is an instructor-led course featuring lecture and hands-on exercises. Online demonstrations

and written practice sessions reinforce the concepts and skills introduced.


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R12.x Oracle Payroll Fundamentals: Configuration (Global) Table of Contentsiv

Related Publications

Oracle Publications

Title Part Number

Oracle HRMS Payroll Processing Management Guide E13514-03

Additional Publications

• System release bulletins

• Installation and user’s guides

• Read-me files

• International Oracle User’s Group (IOUG) articles

• Oracle Magazine


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R12.x Oracle Payroll Fundamentals: Configuration (Global) Table of Contentsv

Typographic Conventions

Typographic Conventions in Text

Convention Element Example

Bold italic Glossary term (ifthere is a glossary)

The algorithm inserts the new key.

Caps and

lowercase

Buttons,

check boxes,

triggers,

windows

Click the Executable button.

Select the Can’t Delete Card check box.

Assign a When-Validate-Item trigger to the ORD block.

Open the Master Schedule window.

Courier new,

case sensitive

(default is

lowercase)

Code output,

directory names,

filenames,

passwords,

pathnames,

URLs,

user input,usernames

Code output: debug.set (‘I”, 300);

Directory: bin (DOS), $FMHOME (UNIX)

Filename: Locate the init.ora file.

Password: User tiger as your password.

Pathname: Open c:\my_docs\projects

URL: Go to http://www.oracle.com

User input: Enter 300

Username: Log on as scott

Initial cap Graphics labels

(unless the term is a

proper noun)

Customer address (but Oracle Payables)

Italic Emphasized words

and phrases,

titles of books and

courses,

variables

Do not save changes to the database.

For further information, see Oracle7 Server SQL Language

Reference Manual.

Enter [email protected], where user_id is the

name of the user.

Quotation

marks

Interface elements

with long namesthat have only

initial caps;

lesson and chapter

titles in cross-

references

Select “Include a reusable module component” and click Finish.

This subject is covered in Unit II, Lesson 3, “Working with

Objects.”

Uppercase SQL column

names, commands,

functions, schemas,

table names

Use the SELECT command to view information stored in the

LAST_NAME

column of the EMP table.

Arrow Menu paths Select File > Save.Brackets Key names Press [Enter].

Commas Key sequences Press and release keys one at a time:[Alternate], [F], [D]

Plus signs Key combinations Press and hold these keys simultaneously: [Ctrl]+[Alt]+[Del]


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R12.x Oracle Payroll Fundamentals: Configuration (Global) Table of Contentsviii

Typographic Conventions in Code

Convention Element Example

Caps and

lowercase

Oracle Forms

triggers

When-Validate-Item

Lowercase Column names,

table names

SELECT last_nameFROM s_emp;

Passwords DROP USER scottIDENTIFIED BY tiger;

PL/SQL objects OG_ACTIVATE_LAYER(OG_GET_LAYER (‘prod_pie_layer’))

Lowercase

italic

Syntax variables CREATE ROLE role

Uppercase SQL commands and

functions

SELECT useridFROM emp;

Typographic Conventions in Oracle Application Navigation Paths

This course uses simplified navigation paths, such as the following example, to direct you

through Oracle Applications.

(N) Invoice > Entry > Invoice Batches Summary (M) Query > Find (B) Approve

This simplified path translates to the following:

1. (N) From the Navigator window, select Invoice then Entry then Invoice Batches

Summary.

2. (M) From the menu, select Query then Find.

3. (B) Click the Approve button.

Notations:

(N) = Navigator

(M) = Menu

(T) = Tab

(B) = Button

(I) = Icon

(H) = Hyperlink

(ST) = Sub Tab


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R12.x Oracle Payroll Fundamentals: Configuration (Global) Table of Contentsvii

Typographical Conventions in Oracle Application Help System Paths

This course uses a “navigation path” convention to represent actions you perform to find

pertinent information in the Oracle Applications Help System.

The following help navigation path, for example—

(Help) General Ledger > Journals > Enter Journals

—represents the following sequence of actions:

1. In the navigation frame of the help system window, expand the General Ledger entry.

2. Under the General Ledger entry, expand Journals.

3. Under Journals, select Enter Journals.

4. Review the Enter Journals topic that appears in the document frame of the help system

window.


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R12.x Oracle Payroll Fundamentals: Configuration (Global) Table of Contentsviii


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R12.x Payroll Fundamentals: Configuration Practices and Solutions

Chapter 1 - Page 1

R12.x Payroll Fundamentals:Configuration Practices andSolutions

Chapter 1


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Chapter 1 - Page 2


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Chapter 1 - Page 3

R12.x Payroll Fundamentals: Configuration


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Chapter 1 - Page 4

Objectives


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Chapter 1 - Page 5

Payroll Configuration - Introduction

There are no Practices and Demonstrations in this Lesson.


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Chapter 1 - Page 6

Payroll Configuration Fundamentals



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Chapter 1 - Page 7

Defining Payrolls for Your Organization


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Chapter 1 - Page 8

Practice: Defining Payment Methods

Overview

In this practice you will learn how to define the following Payment Methods for your Organizationusing the same source bank payroll account:

• Cheque

• Direct Deposit

• Third Party Payment

Assumptions• You can use the OU HRMS Manager or OU Super HRMS Manager responsibility to

perform this task. In this practice, we log in as ouhrms/welcome and use the OU HRMSManager responsibility.

• You must have access to an Oracle Application Vision database or comparable trainingor test instance at your site on which to complete this practice.

• Set your effective date to 01-JAN-2000.

• This practice covers only the required steps for performing this task.

• Replace xx with your initials or the unique group identifier provided by your instructor.

Tasks

Login

Login to Vision and navigate to the Organizational Payment Method window.

Define a Cheque Payment Method

Enter the required fields for a Cheque Payment Method to define currency, source bank details,and GL cash account.

Define a Direct Deposit Payment MethodEnter the required fields for a Direct Deposit Payment Method to define currency, source bankdetails, and GL cash account.

Define a Third Party Payment Method

Enter the required fields for a Third Party Payment Method to define currency, source bankdetails, and GL cash account.


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Chapter 1 - Page 9

Solution: Defining Payment Methods

Login

1. Navigate to the Organizational Payment Method window:

(N) Payroll > Payment Methods

2. Set your effective date for this exercise to 01-JAN-2000.


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Chapter 1 - Page 10

Define a Cheque Payment Method

3. Enter Cheque_xx as your payment method name.

4. Select Cheque-United Kingdom as the payment method type.

5. Leave the Third Party Payment box unchecked.

6. Select United Kingdom as the Source Bank-Country.

7. Enter the following GB Bank Details:

Sort Code

Bank Name

Bank Branch

Account Number

Account Name

Account Type

8. Navigate to the General Ledger Tab.

9. Select Vision Corporation UK as your Ledger.

10. Enter the following details for - Cash Account: (Corporate Accounting Flex)

Company - select 99 Vision Corporation

Department - 400 Sales

Account - select 2110 Payable to Bank Current.

Intercompany - 00 Default

11. Save your work.

12. Close the window.

Define a Direct Deposit Payment Method

13. Navigate to the Organizational Payment Method window:

(N) Payroll > Payment Methods


15. Enter Direct Deposit xx as your payment method name.

16. Select BACS Tape as the payment method type.

17. Leave the Third Party Payment box unchecked.



Sort Code

Bank Name

Account Number

Account Name

Account Type

20. Enter the following Further Information:

BACS User Number

BACS Limit


22. Enter the following details for GL Cash Account:

Company - select 99 Vision Corporation.


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Chapter 1 - Page 11

Department - select 400 as your department.


Intercompany – 00 Default

23. Save your work.

Define a Third Party Payment Method

24. Navigate to the Organizational Payment Method window: (N) Payroll > Payment Methods


26. Enter Third Party xx as your payment method name.

27. Select Cheque-United Kingdom as the payment method type.

28. Check the Third Party Payment box.



Sort Code

Bank Name

Account Number

Account Name

Bank Branch Location

31. Enter the following Further Information:

BACS User Number

BACS Limit


33. Enter the following details for GL Cash Account:

Company - select 99 Vision Corporation.

Department - select 400 as your department.


Intercompany – 00 Default

34. Save your work.


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Chapter 1 - Page 12

Practice - Defining Consolidation Sets

Overview

This practice reinforces your ability to create consolidation sets.

You should already have a consolidation set defined by the system. Review the consolidationset.

Assumptions• For this practice, log on to Vision as hrms/welcome and use the US Super HRMS

responsibility.

• Replace XX with your terminal number or initials.


Tasks

Navigate to the relevant window

Navigate to the Consolidation Sets window.

Define a Consolidation Set

Review existing consolidation sets, and create a new consolidation set.


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Chapter 1 - Page 13

Solution: Defining Consolidation Sets

Define Consolidation Sets

1. Navigate to the Consolidation Sets window using US Super HRMS Manager responsibility:

(N) Payroll > Consolidation

2. Date Track to 01-JAN-20YY (YY= 2 years ago)

3. Perform Query Enter (F11)

4. Perform Query Run (Ctrl+F11)

Vision Corporation will be displayed.

5. In a new record, enter XX Semi Monthly Payrolls as the name of the Consolidation Set.

6. Save your work.

7. Close the form.


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Chapter 1 - Page 14

Practice: Defining a Payroll

Overview

In this practice you will define a monthly and weekly payroll as of 01-JAN-2000.

Assumptions•

You can use the OU HRMS Manager or OU Super HRMS Manager responsibility toperform this task. In this practice, we log in as ouhrms/welcome and use the OU HRMSManager responsibility.





Tasks

Navigate to the relevant windowNavigate to the Payroll Description window.

Define a Monthly Payroll

Define a monthly payroll as of 01-JAN-2000 with the following attributes:

Name monthly_payroll_xx

Period Type Calendar MonthFirst Period End Date 31-JAN-2000

Number of Years 5

Date Offset Enter the following date offsets:

•

Normal Payment: 0 (default)• BACS Processing: -3

• Pay Advice: 0 (default)

• Cut Off: 0 (default)

Default Select the following:

• Payment Method: Cheque_xx

• Consolidation Set: EducationMonthly

Costing Enter the following:

• Company: 03 United Kingdom

• Cost Centre: 110 Vision Industries• Account: 5800 Salaries

• Project: 220 Software Suite

• Activity: 000 (default)Suspense Account Do not enter any details here, but note that

entry procedure is identical to the

procedure for completing the costing field.


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Chapter 1 - Page 15

Arrears Payroll Check this box if you want your payrollruns to allow an arrears payment.

Otherwise, leave this box unchecked.Negative Payment Allowed Check this box if you want your payroll

runs to allow a negative payment as a validresult. Otherwise, leave this box

unchecked.Statutory Information Enter the following:

• Employers PAYE Reference: 518/O168 (14 chars max)

• Unique ID : Enter a number (12chars max)

• ECON: 581/0162

• Maximum Holiday Paid Advance 0 (default)

• BACS Payment Rule: Previous

Banking Day

Define a Weekly Payroll

Define a weekly payroll as of 01-JAN-2000 with the following attributes:

Name weekly_payroll_xx

Period Type WeekFirst Period End Date 7-JAN-2000

Number of Years 5

Date Offset Enter the following date offsets:

• Normal Payment: 0 (default)

• BACS Processing: -3

• Pay Advice: 0 (default)• Cut Off: 0 (default)

Default Select the following:

• Payment Method: cheque_xx

• Consolidation Set: Education

WeeklyCosting Enter the following:

• Company: 03 United Kingdom

• Cost Centre: 110 Vision Industries

• Account: 5800 Salaries

• Project: 220 Software Suite

• Activity: 000 (default)Suspense Account Do not enter any details here, but note that

entry procedure is identical to the

procedure for completing the costing field. Arrears Payroll Check this box if you want your payroll

runs to allow an arrears payment.

Otherwise, leave this box unchecked.


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Chapter 1 - Page 16

Negative Payment Allowed Check this box if you want your payrollruns to allow a negative payment as a valid

result. Otherwise, leave this boxunchecked.

Statutory Information Enter the following:

• Employers PAYE Reference:

518/O168 (14 chars max)• Unique ID : Enter a number (12

chars max)

• ECON: 581/0162

• Maximum Holiday Paid Advance 0 (default)

• BACS Payment Rule: PreviousBanking Day


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Chapter 1 - Page 17

Solution: Defining a Payroll

Setting Up Payroll


1. Navigate to the Payroll Description Window:

(N) Payroll > Description

2. Set your effective date for this exercise to 01-JAN-2000

Define a Monthly Payroll

3. Enter Monthly_Payroll_xx as your payroll name.

4. Select Calendar Month as the Period Type.

5. Enter a first period end date of 31-JAN-2000

6. Enter these date offsets:

Normal Payment – 0 (the default)

BACS Processing – enter –3

Pay Advice – 0 (the default)

Cut Off – 0 (the default)

7. Select Cheque xx as the default payment method for your payroll.

8. Select Education Monthly as the consolidation set.

9. Enter the following Costing information:

Company: 03 United Kingdom

Cost Centre: 110 Vision Industries

Account: 5800: Salaries

Project: 220 Software Suite

Activity: 00 (the default)

10. Do not enter any Suspense Account Information, but note that the procedure is identicalto the procedure for completing the costing information.


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Chapter 1 - Page 18

11. Check the Negative Payment Allowed box if you want your payroll runs to recognizenegative payments as valid. Otherwise, leave this box unchecked.

12. Enter this Statutory Information:

Employers PAYE Reference: 518/O168 (14 chars max)

Unique ID : Enter a number (12 chars max)

ECON: 581/0162

Maximum Holiday Paid Advance: 0 (default)

13. BACS Payment Rule: Previous Banking Day

14. Save your work

15. Choose the Valid Payment Methods button and add Direct Deposit_xx. (Cheque_xxshould already exist as the default payment method).

16. Save your work.

Define a Weekly Payroll

17. Navigate to the Payroll Description window:


18. Set your effective date for this exercise to 01-JAN-2000

19. Enter the following details:

20. Enter Weekly_Payroll_xx as your payroll name.

21. Select Week as the Period Type.

22. Enter a first period end date of 7-JAN-2000

23. Enter these date offsets:

Normal Payment – 0 (the default)

BACS Processing – enter –3

Pay Advice – 0 (the default)

Cut Off – 0 (the default)

24. Select Cheque xx as the default payment method for your payroll.


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Chapter 1 - Page 19

25. Select Education Monthly as the consolidation set.

26. Enter the following Costing information:

Company: 03 United Kingdom

Cost Centre: 110 Vision Industries

Account: 5800: Salaries

Project: 220 Software Suite

Activity: 00 (the default)

27. Do not enter any Suspense Account Information, but note that the procedure is identicalto the procedure for completing the costing information.

28. Check the Negative Payment Allowed box if you want your payroll runs to recognizenegative payments as valid. Otherwise, leave this box unchecked.

29. Enter this Statutory Information:

Employers PAYE Reference: 518/O168 (14 chars max)

Unique ID : Enter a number (12 chars max)

ECON: 581/0162

Maximum Holiday Paid Advance: 0 (default)

BACS Payment Rule: Previous Banking Day

30. Save your work

31. Choose the Valid Payment Methods button and add Direct Deposit_xx. (Cheque_xxshould already exist as the default payment method).

32. Save your work.


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Chapter 1 - Page 20


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Chapter 1 - Page 21

Maintaining PAYE and NI (U.K. only)


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Chapter 1 - Page 22

Practice: Entering NI Details for a Company Director

Overview

Enter NI details for a company director.

Assumptions•






Tasks

Navigate to the relevant windowNavigate to the Statutory Details window.

Enter NI details for a company director

Query a company director, Anthony David Ambrose xx and change his Process type to aDirector Process Type.


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Chapter 1 - Page 23

Solution: Entering NI Details for a Company Director


1. Navigate to the Statutory Details window for Anthony David Ambrose xx:

(N) Fastpath > UK Tax > Statutory Details

Enter NI details for a company director

2. Choose NI Details (T).

3. Change your effective date, if required.

4. Select a Director process type for the employee. Oracle Payroll automatically performsthe correct NI calculation for whatever process type you select. Leavers’ choices areonly available when the employee is a leaver. There are thirteen choices altogether, butonly the following choices apply to company directors:

− Director

− Director Normal

− Director Pro-Rate

− Director Normal Pro Rate

− Pensioner Director

5. Save your work.


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Chapter 1 - Page 24

Practice: Entering PAYE Details for an Employee

Overview

Enter PAYE details for an employee.

Assumptions•






Tasks

Navigate to the relevant windowNavigate to the Statutory Details window for Camilla Anderson xx.

Enter PAYE details for an employee

Amend the Tax code to 245L and the Tax basis to Cumulative.


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Chapter 1 - Page 25

Solution: Entering PAYE Details for an Employee


1. Navigate to the Statutory Details window:

(N) People > Enter and Maintain > Assignment > Tax Information

Enter PAYE details for an employee

2. Query the employee Camilla Anderson xx in the Find window to open the Assignmentwindow.

3. Change your effective date if required.

4. Enter the employee’s new Tax code of 245L and amend the Tax basis to Cumulative.

5. Save your work.


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Chapter 1 - Page 26

Practice: Entering NI Details for an Employee

Overview

Enter NI details for an employee.

Assumptions•






Tasks

Navigate to the relevant windowNavigate to the Statutory Details window.

Enter NI details for an employee

Query the employee Camilla Anderson xx and amend her NI category to G with a renewal dateof 12 months time for her certificate. Lastly, enter the Scheme Contracted Out Number (SCON)S2345678B.


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Chapter 1 - Page 27

Solution: Entering NI Details for an Employee


1. Navigate to the Statutory Details window:

(N) Fastpath > UK Tax > (T) NI Details

Enter NI details for an employee

2. Query the employee Camilla Anderson xx in the Find window to open the StatutoryDetails window. You use the Statutory Details window to enter NI information.

3. Change your effective date, if required.

4. Amend the NI Category for Camilla Anderson xx to G.

5. In the certificate field, leave the default method of authentication for the employee’scategory.

6. Enter a renewal date for the certificate of 12 months time.

7. Oracle Payroll automatically validates the employee’s pension type as different rates ofNational Insurance apply to different types.

8. Enter the employee’s Scheme Contracted Out Number S2345678B if the employee is amember of a Contracted Out Money Purchase pension scheme (COMP). You can set upthe data for this field in the Lookup GB_SCON.


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Chapter 1 - Page 28


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Chapter 1 - Page 29

Maintaining Other Deductions (U.K. Only)


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Chapter 1 - Page 30

Practice: Maintaining Student Loans

Overview

Enter student loan information for an employee.

Assumptions•

You must have access to an Oracle Application Vision database or comparable trainingor test instance at your site on which to complete this practice.

• You must sign into the Oracle Application using hrms/welcome and use the SuperHRMS responsibility for your legislation.

• Seeded Vision Data.

• Use your initials if the practice requests an “xx”.

Tasks

Navigate to the Relevant Window

Navigate to the Element Entries window for an assignment.

Enter Student Loan Information

Add the Student Loan element to the elements entries and provide the necessary details.


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Chapter 1 - Page 31

Solution: Maintaining Student Loans


1. Navigate to the Element Entries window:

(N) People > Enter & Maintain > Assignment > Entries > Element Entries

Enter Student Loan Information2. Add in the Student Loan element and enter a cost code, if applicable.

3. Click on Entry Values.

4. Enter the Start Date in the format DD-MON-YYYY.

5. Enter the End Date in the format DD-MON-YYYY.

6. Save your work.


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Chapter 1 - Page 32

Practice: Maintaining Tax Credits

Overview

Enter tax credit information for an employee.

Assumptions•

You must have access to an Oracle Application Vision database or comparable trainingor test instance at your site on which to complete this practice.

• You must sign into the Oracle Application and use the Super HRMS responsibility foryour legislation.

• Seeded Vision Data.

• Use your initials if the practice requests an “xx”.

Tasks


Navigate to the Element Entries window.

Enter Tax Credit Information

Query an employee and enter their tax credit details.


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Chapter 1 - Page 33

Solution: Maintaining Tax Credits


1. Navigate to the Element Entries window:

(N) People > Enter & Maintain > Assignment > Entries

Enter Tax Credit Information2. Select the Working Tax Credit element.

3. Enter the start date in the format DD-MON-YYYY.

4. Enter the daily rate.

5. Save your work.


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Chapter 1 - Page 34


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Chapter 1 - Page 35

Costing Overview



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Chapter 1 - Page 36

Processing Costs


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Chapter 1 - Page 37

Guided Demonstration - Previewing Cost Allocations

Responsibility: local Super HRMS Manager

Log onto Vision using hrms/welcome.

1. Navigate to the People window.

(N) People > Enter and Maintain

2. Find the employee named Sabatino.

3. Click Assignment to go to the Assignment window.

4. Click Others and select View Cost Allocations. A window opens, displaying the costallocations for the selected employee.

5. To check the cost allocation values are a valid combination, select an element and clickValidate. A red cross appears against the element if the cost allocations are invalid.Otherwise, a green tick displays.

6. Select the Details icon for an element to view the specific costing details. The details alsoprovide further information on any errors, if any cost allocation value is invalid.

7. For a graphical representation of cost allocation for the employee, select the Graphical Analysis tab and select the Cost Allocation Key Flexfield segment you would like to view. Apie chart shows the cost distribution of the selected employee’s elements across thesegment values. The bar across the top of the chart provides the key to the colored piesegments.

8. Close the Cost Allocations preview window to return to the Assignment window.


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Chapter 1 - Page 38

Practice - Allocating Costs

Overview

The objective of this practice is to investigate the allocation of assignment costs for a specificemployee, by looking at the cost entry levels you would use during system setup.

You will also override the existing cost allocation values for a specific employee assignment.

Assumptions• For this practice, log in to Vision as hrms/welcome and use your local Super HRMS

responsibility.


• Your course instructor will allocate you an employee to research and update.

Tasks

Investigate Default Cost Allocations

You want to find out how the costing of a selected employee’s salary is affected by the costallocations at Payroll, Element, and Organization levels. The following employees are paid aRegular Salary through the Vision HR Semi-Monthly payroll:

No. Employee Name Organization

604 Bullen, Mrs. Trisha US Sales Central

596 Finnegan, Mr. Jeremy US Sales Central

621 Johnson, Ms. Michelle US Sales Central

841 Jonathon, Mr. Gilbert US Sales Central

568 Kahn, Ms. Natalie US Sales Central

842 Menendez, Mr. Leticia US Sales Central

613 Peters, Mr. Stanley US Sales Central

614 Putin, Mr. Rosco US Sales Central

888 Shaffer, Ms. Heidi US Sales Central

844 Smithers, Ms. Kandi US Sales Central

597 Stojakovic, Ms. Petra US Sales Central

606 Tyson, Mr. Mark US Sales Central

601 Ashton, Mrs. Lisa US Sales East

575 Brady, Mrs. Jennifer Kathleen US Sales East

619 Bueller, Ms. Monica US Sales East

590 George, Mrs. Joan US Sales East

577 Gomez, David US Sales East

591 Hurrianko, Ms. Rhonda US Sales East


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Chapter 1 - Page 39

618 Jackson, Mr. Travis US Sales East

594 Law, Mr. Paul US Sales East

Your course instructor will allocate you an employee to investigate.

Investigate the cost allocations of the Regular Salary element, the Vision Semimonthly payroll,and your employee’s organization.

As a result of your investigations, answer the following questions: How are your employee’s costs distributed according to these cost settings?

Why is there no distribution set associated with the Regular Salary element?

Which costing levels can you use to override these settings?

Override Default Cost Allocations

Your employee’s role in the organization is undergoing temporary changes that require changesto how you allocate their salary costs.

At the Assignment level, the cost of your employee’s salary is not currently allocated to a costcenter. From the current date, you want to split the costs of your employee’s salary across twocost centers.

At Assignment level, add new cost allocations for your employee’s Regular Salary as follows: Allocate 80% to the Sales Central cost center (code 440) from today’s date to one month

from today.

Allocate 20% to the US Organization cost center (code 210) from today’s date to onemonth from today.

Note: Remember that distribution of costs across cost codes must add up to 100%.

You want to award your employee a bonus for the extra work they have been assigned. AtElement Entry level, add a Bonus element and allocate the cost of this element to the USOrganization cost center (code 210), and to the Illinois Labor Distribution (code 2106).

Which cost allocations is this Element Entry cost allocation overriding?


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Solution - Allocating Costs

Investigate Default Cost Allocations

Responsibility = local Super HRMS Manager

1. Navigate to the Payroll window using the local Super HRMS Manager responsibility:


2. In the Payroll window, enter query mode to search for Vision HR Semi-Monthly in the Namefield. Run the query.

3. Click in the Costing field to view the cost allocation segments for the Payroll entry level.


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4. Note the cost allocation values entered at this level.

5. Close all windows to return to the Navigator. Do not save any changes.

6. Navigate to the Organization window using the local Super HRMS Manager responsibility:

(N) Work Structures > Organization > Description

7. Enter the name of your employee’s organization in the Name field of the Find Organizationwindow and choose Find to go to the Organization window.

8. Choose Others to view the Additional Organization Information.


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9. Select Costing Information.

10. In the Additional Information window click in the Costing field to view the cost allocationsegments for the Organization entry level.


12. Close all windows to return to the Navigator. Do not save any changes.13. Navigate to the Element Link window using the local Super HRMS Manager responsibility:

(N) Total Compensation > Basic > Link


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14. In the Element Link window, enter query mode to search for Regular Salary in the ElementName field. Run the query.

15. Note the value for Costable Type.


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16. Click in the Costing field to view the cost allocation segments for the Element Link level.


18. Close all windows to return to the Navigator. Do not save any changes.

19. You should have learned the following in the course of your investigation:

The Payroll level distributes Mr. Sabatino’s costs to:

o Company: Operations

o Labor Distribution: General and Administrative

o Product: No Product

Neither the Element Link, nor the Organization levels override the Payroll level entries.None of these higher levels allocate costs to the Cost Center or the GL Code.

There is no distribution set associated with the Regular Salary element because theCostable Type is Fixed. Only Distributed costs require a distribution set.

You can use the Assignment and Element Entry levels to override these cost allocationsettings, but only for those segments that are enabled at those levels.

Override Default Cost Allocations

Responsibility = local Super HRMS Manager

20. To distribute the cost of your employee’s salary across two cost centers, navigate to the Assignment window.

(N) People > Enter and Maintain

21. Find your employee.


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22. Navigate to the Costing window from the Assignment window.

(B) Assignment > Others > Costing

Note: Each line is datetracked and the total allocation of costs at any one time must be

100%.23. Enter 80 in the Proportion field for the existing record; tab to exit the field.

24. The Cost Allocation Flexfield window appears. Enter 440 (Sales Central) in the Cost Centerfield. Choose OK to return to the Costing window.

25. In a new record enter 20 in the Proportion field; tab to exit the field.

26. The Cost Allocation Flexfield window appears. Enter 210 (US Organization) in the CostCenter field. Choose OK to return to the Costing window.


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27. Save your work. The Effect From dates automatically update to your effective date.

28. You have now distributed the cost of your employee’s salary across two cost centers. Closethe Costing window to return to the Assignment window.

29. To provide your employee with a bonus, choose the Entries button to go to the ElementEntries window.

30. Enter Bonus in the Element Name field of a new record.31. Click in the Costing field. The Cost Allocation Flexfield window for the Element Entry

appears. Here you can allocate costs for the Cost Center segment and the LaborDistribution segment.


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32. Enter a value of 210 (US Organization) in the Cost Center field.

33. Enter a value of 2106 (Illinois) in the Labor Distribution field.

34. Choose OK, to return to the element Entries window.

35. Enter Merit in the Reason field.

36. Leave the default dates in the Effect Dates fields.


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37. Save your work and close the window.

38. You have now awarded your employee a bonus and costed it.

39. The Payroll level costing allocates the Labor Distribution costs of employees on this payrollto General and Administrative. You have overridden the cost allocation set at Payroll level,to allocate the Labor Distribution costs of your employee’s bonus to Illinois.

40. No other entry levels allocate Cost Center costs, so in allocating the cost of your

employee’s bonus to the US Organization cost center, you have not overridden any existingcost entries.


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Payroll Configuration - Summary


Oracle Payroll Admin Guide

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Transcript of Oracle Payroll Admin Guide