STU-1503-890-ENG 00

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HRMS 8.90

Global Payroll: Country Rules Mexico

June 2005 STU-1503-890-ENG 00

Student Guide

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Copyright 2005, Oracle. All rights reserved.

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C O N T E N T S

Global Payroll: Country Rules Mexico ..........................................................................ix PeopleSoft Products ...........................................................................................................ix Typographical Conventions and Visual Cues ....................................................................ix Related Documentation and Resources ..............................................................................xi

Course Overview ...............................................................................................................1 Course Objectives ...............................................................................................................1 Agenda: Day 1.....................................................................................................................2 Agenda: Day 2.....................................................................................................................3 Agenda: Day 3.....................................................................................................................4 Agenda: Day 4.....................................................................................................................5

Global Payroll Business Process Overview .....................................................................7 Describing the Integration of Global Payroll and PeopleSoft Enterprise HRMS ...............8 Describing Global Payroll Functionality and Country Extensions .....................................9 Describing Navigation to Country Extension Pages .........................................................10 Describing Global Payroll Frameworks ............................................................................11 Activity 1: Creating Calendars ..................................................................................16 Describing Processing Steps for Payroll ...........................................................................17 Describing Sources of Information About Global Payroll ................................................19

Using Pay Elements .........................................................................................................23 Identifying the Major Element Types ...............................................................................24 Describing Element Creation, Ownership, and Maintenance............................................25 Describing the Naming Convention for Delivered Elements............................................28 Identifying Delivered Elements.........................................................................................30 Activity 2: Using the GP_ELEMENTS Query..............................................................32

Using Payee Data.............................................................................................................35 Describing Human Resources and Global Payroll for Mexico Integration.......................36 Viewing Payee Data in Global Payroll..............................................................................42 Activity 3: Creating and Assigning a Company ............................................................43

Administering Social Security........................................................................................45 Describing the Social Security Process .............................................................................47 Defining Prerequisites for SDI Calculation.......................................................................49 Activity 4: Defining Parameters for a Mexican Pay Group...........................................50 Maintaining the Social Security Quotas Table..................................................................51 Viewing Payee SDI Data...................................................................................................52 Defining Additional Elements for Fixed SDI Calculation ................................................53

Preface

Lesson 1

Lesson 2

Lesson 3

Lesson 4

Lesson 5

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Running the Mass SDI Process .........................................................................................55 Generating IMSS Notices..................................................................................................56 Defining IMSS Information ..............................................................................................57 Associating the Establishment ID (IMSS) with a Location ..............................................60 Entering FONACOT Information .....................................................................................61 Defining Parameters for SDI Calculation..........................................................................62 Activity 5: Calculating Fixed SDI .................................................................................65 Running Social Security Reports ......................................................................................67

Defining Federal Taxes ...................................................................................................73 Describing ISR Tax Methods ............................................................................................75 Defining Parameters for Federal Taxes.............................................................................77 Reviewing Variable Values for a Pay Group ....................................................................79 Defining Tax Methods for Earnings and Deductions........................................................81 Creating the Taxable Base for the Income Tax .................................................................82 Reviewing and Updating Tax Brackets.............................................................................83 Activity 6: Assigning Federal Tax Parameters to a Pay Group .....................................85 Setting Up Subsidy Factor Calculation Parameters...........................................................86 Calculating the Subsidy Factor..........................................................................................87 Running the Multiple Information Report.........................................................................89

Defining State Taxes........................................................................................................95 Defining Variables for State Taxes ...................................................................................96 Defining the Base for State Taxes .....................................................................................98 Maintaining Percentages for State Taxes ........................................................................100 Defining Special State Taxes ..........................................................................................101 Activity 7: Defining a State Tax Earnings Element.....................................................104

Business Overview of Absence Management ..............................................................107 Defining Global Payroll Core Absence Functionality.....................................................108 Reviewing the Similarities Between Payroll and Absence Processing ...........................109 Defining Core Absence Setup Tasks...............................................................................110 Describing the Use of Schedules.....................................................................................111 Defining Entitlement Types ............................................................................................112 Preparing Absence Elements for Use ..............................................................................113 Defining Absence Processing..........................................................................................117

Setting Up and Tracking Absences and Vacations.....................................................121 Explaining Absence Elements.........................................................................................123 Defining Absence Types and Reasons ............................................................................124 Defining Absence Parameters for Mexico ......................................................................125 Creating Schedule Definitions.........................................................................................126 Setting Up Absence Processing.......................................................................................128 Defining Absence Event Parameters ...............................................................................129

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Entering Absence Events.................................................................................................132 Activity 8: Entering Absence Events...........................................................................133 Entering Mass Absence Events .......................................................................................134 Defining Vacation Parameters.........................................................................................136 Setting Up Vacation Rules by Seniority..........................................................................137 Defining Vacation Entitlements ......................................................................................139 Explaining Forecasting....................................................................................................141 Creating Calendars for Forecasting .................................................................................145 Activity 9: Creating a Calendar for Absence Forecasting ...........................................146 Creating Transaction Definitions ....................................................................................147 Activity 10: Creating Transaction Definitions ..........................................................148 Entering Vacation Events................................................................................................149 Activity 11: Entering Vacation Events......................................................................150

Defining Provisions .......................................................................................................155 Describing How Provisions Are Calculated....................................................................156 Managing Delivered Provisions ......................................................................................158 Creating Provisions .........................................................................................................159 Activity 12: Creating a Provision ..............................................................................164

Calculating Overtime ....................................................................................................167 Explaining Overtime .......................................................................................................168 Defining an Overtime Calendar ......................................................................................170 Defining Overtime Parameters ........................................................................................172 Entering Overtime ...........................................................................................................175 Running the Overtime Report .........................................................................................179 Activity 13: Calculating Overtime ...........................................................................180

Setting Up and Tracking Loans ...................................................................................183 Defining a Loan Element ................................................................................................184 Assigning Loans..............................................................................................................188 Calculating Loans............................................................................................................189 Running a Loan Report ...................................................................................................191 Activity 14: Setting Up and Tracking Loans.............................................................193

Defining Garnishments .................................................................................................197 Describing Garnishment Types .......................................................................................198 Explaining Garnishment Setup........................................................................................199 Defining a Recipient for a Garnishment..........................................................................201 Assigning a Recipient to a Garnishment and a Payee .....................................................204 Activity 15: Assigning a Recipient to a Garnishment and a Payee ...........................206 Assigning a Garnishment Deduction to a Payee .............................................................207 Entering Supporting Element Overrides .........................................................................210 Activity 16: Assigning a Garnishment Deduction to a Payee ...................................212

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Generating Payslips.......................................................................................................215 Explaining the Payslip Definition Process ......................................................................216 Creating Group Criteria...................................................................................................217 Creating a Group of Employees ......................................................................................218 Defining the Payslip Sort Order ......................................................................................221 Selecting Earnings and Deductions to Include on the Payslip ........................................223 Generating Payslips.........................................................................................................224 Viewing Payslips Online .................................................................................................225 Activity 17: Creating an Employee Group and Payslips...........................................227

Processing Employee Terminations.............................................................................231 Explaining Termination Setup.........................................................................................232 Defining Termination Versions and Actions/Reasons ....................................................234 Associating Termination Payments with Termination Versions.....................................237 Controlling Termination Processing Within a Payroll ....................................................239 Terminating an Employee ...............................................................................................241 Assigning Salary Credit for Tax Calculation ..................................................................242 Generating Termination and Layoff Letters....................................................................244 Activity 18: Processing an Employee Termination...................................................245

Processing Results Reversals ........................................................................................249 Explaining Results Reversals ..........................................................................................250 Defining a Results Reversal ............................................................................................251 Activity 19: Defining a Results Reversal ..................................................................253

Setting Up and Processing Special Earnings...............................................................255 Setting Up the Saving Fund.............................................................................................256 Defining the Christmas Bonus ........................................................................................258 Paying the Christmas Bonus............................................................................................262 Activity 20: Paying Christmas Bonuses ....................................................................266 Defining PTU ..................................................................................................................267 Processing PTU ...............................................................................................................274 Generating PTU Reports .................................................................................................276 Activity 21: Defining and Processing PTU ...............................................................277

Setting Up Banking and Recipient Processes..............................................................281 Setting Up Banking .........................................................................................................282 Processing Banking Information .....................................................................................284 Activity 22: Defining Banking Setup ........................................................................287 Activity 23: Running a Payroll Calculation ..............................................................288 Activity 24: Running the Mexican Bank Transfer and Banking Interface Processes289

Developing an Implementation Methodology .............................................................291 Defining Your Implementation Strategy .........................................................................293 Defining the Rules-Building Process ..............................................................................295 Analyzing Your Business Processes ...............................................................................296

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Lesson 15

Lesson 16

Lesson 17

Lesson 18

Lesson 19

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Documenting Your Implementation Strategy .................................................................303 Testing Your Design .......................................................................................................305 Following Best Practices .................................................................................................307 Integrating Business Requirements and Delivered Rules ...............................................309 Sharing Implementation Tasks ........................................................................................315

Following Best Practices ...............................................................................................319 Explaining the Importance of Best Practices in Rules Design ........................................320 Determining Best Practices for Your Business Requirements ........................................321 Constructing Rules that Enhance System Performance ..................................................322 Constructing Rules that Are Easy to Update and Maintain.............................................334 Meeting Customer Requirements with Delivered Rules .................................................335 Testing System Efficiency...............................................................................................336

Implementing Rules for Global Payroll Mexico .........................................................343 Defining Your Business Practices and Requirements .....................................................344 Activity 25: Analyzing Business Requirements and Setting Up the Caja de Ahorro Deduction ..............................................................................................345 Activity 26: Analyzing Business Requirements for a Service Bonus .......................346 Troubleshooting the Payroll Process ...............................................................................347

Course Review ...............................................................................................................349 Completed Objectives .....................................................................................................349 Describing the Business Process of Global Payroll for Mexico......................................350 Using Pay Elements ........................................................................................................351 Maintaining Payee Data ..................................................................................................352 Administering Social Security.........................................................................................353 Working with Delivered Federal and State Tax Elements ..............................................354 Managing Absence Processing........................................................................................356 Preparing Additional Mexican Payroll Functionality......................................................357 Setting Up Banking and Recipient Processes..................................................................365 Developing and Executing an Implementation Strategy .................................................366

Worksheets Implementing Rules for PeopleSoft Global Payroll for Mexico........367 Worksheet 1.....................................................................................................................368 Worksheet 2.....................................................................................................................370 Worksheet 3.....................................................................................................................372 Worksheet 4.....................................................................................................................374

Workshop Results Implementing a Caja de Ahorro Deduction for Global Payroll Mexico ............................................................................................................................377 Implementing an Employee Caja de Ahorro Deduction .................................................378 Creating Elements ...........................................................................................................378 Modifying the Organizational Framework......................................................................379 Modifying the Processing Framework ............................................................................381 Updating Payee Data .......................................................................................................382

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Lesson 21

Lesson 22

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Appendix B

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Running the Payroll Process............................................................................................383 Reviewing Results...........................................................................................................385

Workshop Results Implementing a Service Bonus for Global Payroll Mexico ....389 Implementing the Service Bonus ....................................................................................390 Creating Elements ...........................................................................................................390 Modifying the Organizational Framework......................................................................394 Creating a Special Payroll Process ..................................................................................395 Running the Payroll Process............................................................................................399 Reviewing Results...........................................................................................................399 Finalizing the Calculation Process ..................................................................................401

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P r e f a c e

Global Payroll: Country Rules Mexico

PeopleSoft Products

This course refers to the following PeopleSoft product: PeopleSoft Enterprise Global Payroll for Mexico.

Typographical Conventions and Visual Cues

This section discusses:

Typographical conventions. Visual cues. Currency codes.

Typographical Conventions

This table contains the typographical conventions that are used in this guide:

Typographical Convention Description

Bold Indicates PeopleCode function names, method names, language constructs, and PeopleCode reserved words that must be included literally in the function call.

Italics Indicates field values, emphasis, and PeopleSoft or other book-length publication titles. In PeopleCode syntax, italic items are placeholders for arguments that your program must supply.

We also use italics when we refer to words as words or letters as letters, as in the following: Enter the letter O.

KEY+KEY Indicates a key combination action. For example, a plus sign (+) between keys means that you must hold down the first key while you press the second key. For ALT+W, hold down the ALT key while you press the W key.

Monospace font Indicates a PeopleCode program or other code example. (quotation marks) Indicate lesson and chapter titles in cross-references and words that

are used differently from their intended meanings.

. . . (ellipses) Indicate that the preceding item or series can be repeated any number of times in PeopleCode syntax.

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Typographical Convention Description

{ } (curly braces) Indicate a choice between two options in PeopleCode syntax. Options are separated by a pipe ( | ).

[ ] (square brackets) Indicate optional items in PeopleCode syntax.

& (ampersand) When placed before a parameter in PeopleCode syntax, an ampersand indicates that the parameter is an already instantiated object.

Ampersands also precede all PeopleCode variables.

Visual Cues

Training courses contain the following visual cues.

Notes Notes indicate information that you should pay particular attention to as you work with the PeopleSoft system.

Note. Example of a note.

If the note is preceded by Important!, the note is crucial and includes information that concerns what you must do for the system to function properly.

Important! Example of an important note.

Warnings Warnings indicate crucial configuration considerations. Pay close attention to warning messages.

Warning! Example of a warning.

Cross-References Training guides provide cross-references either under the heading See Also or on a separate line preceded by the word See. Cross-references lead to other documents, such as PeopleBooks, that are pertinent to the immediately preceding documentation.

Example:

Example of cross-reference to a PeopleBook

Currency Codes

The following currency code appears in this guide: MXN (Mexican pesos).

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Related Documentation and Resources

PeopleSoft applications are documented in PeopleBooks, which are delivered on the PeopleBooks CD-ROM. You can also order printed, bound versions of PeopleBooks through the Documentation section of the PeopleSoft Customer Connection website. You can find updates and additional documentation for each release on the PeopleSoft Customer Connection website.

See PeopleSoft Customer Connection, http://www.peoplesoft.com/corp/en/login.jsp.

The following resources are located on the PeopleSoft Customer Connection website:

Resource Navigation

Application maintenance information Updates + Fixes

Business process diagrams Support, Documentation, Business Process Maps

Enterprise Integration Point (EIP) catalog Support, Documentation, Enterprise Integration Point (EIP) Catalog

Hardware and software requirements Implement, Optimize + Upgrade, Implementation Guide, Implementation Documentation and Software, Hardware and Software Requirements

Installation guides Implement, Optimize + Upgrade, Implementation Guide, Implementation Documentation and Software, Installation Guides and Notes

Interactive Service Repository Interactive Services Repository

PeopleBook documentation updates Support, Documentation, Documentation Updates

PeopleSoft support policy Support, Support Policy

Product release roadmap Support, Roadmaps + Schedules

Release notes Implement, Optimize + Upgrade, Upgrade Guide, Upgrade Documentation and Software, Release Notes

Table-loading sequences Implement, Optimize + Upgrade, Implementation Guide, Implementation Documentation and Software, Table Loading Sequences

Troubleshooting information Support, Troubleshooting

Upgrade documentation Implement, Optimize + Upgrade, Upgrade Guide

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L e s s o n 1

Course Overview

Course Objectives

By the end of this course, you will be able to:

Describe the business process of Global Payroll for Mexico. Use pay elements. Maintain payee data. Administer social security. Work with delivered federal and state tax elements. Manage absence processing. Prepare additional Mexican payroll functionality. Set up banking and recipient processes. Develop and execute an implementation strategy.

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Student Notes

Course Content Global Payroll for Mexico is an integrated and intuitive payroll system that enables control over all aspects of payroll processing. This 4-day course covers the functionality to process payroll in Mexico. This course includes system setup, payee data definition, and payroll processing.

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Agenda: Day 1

On day one, we will provide an overview of Global Payroll for Mexico and discuss these topics:

Using pay elements. Using payee data. Administering social security. Defining federal taxes. Defining state taxes.

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Student Notes

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Agenda: Day 2

On day two, we will discuss these topics:

Business overview of absence management. Setting up and tracking absences and vacations. Defining provisions. Calculating overtime. Setting up and tracking loans.

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Student Notes

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Agenda: Day 3

On day three, we will discuss these topics:

Defining garnishments. Generating payslips. Processing employee terminations. Processing results reversals. Setting up and processing special earnings. Setting up banking and recipient processes.

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Student Notes

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Agenda: Day 4

On day four, we will discuss these topics:

Developing an implementation methodology. Following best practices. Implementing rules for Global Payroll for Mexico.

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Student Notes

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Notes

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L e s s o n 2

Global Payroll Business Process Overview

Objectives

By the end of this lesson, you will be able to describe:

The integration of Global Payroll and PeopleSoft Enterprise HRMS. Global payroll functionality and country extensions. Navigation to country extension pages. Global Payroll frameworks. Processing steps for payroll. Sources of information about Global Payroll.

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Student Notes

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Describing the Integration of Global Payroll and PeopleSoft Enterprise HRMS

Integration of Global Payroll and PeopleSoft Enterprise HRMS

Global Payroll shares the same relational data structure, user interface, reporting tools, and customization capabilities as PeopleSoft Enterprise Human Resources.

HumanResources

GlobalPayroll

Payrollfor

NorthAmerica

PayrollInterface

BenefitsAdmin

FSAAdmin

Timeand

Labor

PensionAdmin

StockAdmin

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Student Notes

Human Resources and Global Payroll Integration This integration diagram describes how Human Resources and Global Payroll support one another:

Global Payroll shares the same relational data framework, user interface, reporting tools, and customization capabilities as Human Resources.

This enables Global Payroll access to the information it needs from other PeopleSoft tables to produce accurate payrolls.

Global Payroll automatically retrieves information such as Personal Data and Job Data from Human Resources for payroll processing.

Global Payroll integrates with both PeopleSoft Enterprise Time and Labor and PeopleSoft Enterprise Financials (such as General Ledger).

Data from Global Payroll can be accurately and easily exported to other systems.

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Describing Global Payroll Functionality and Country Extensions

Global Payroll Functionality and Country Extensions

This diagram displays the two complementary pieces that Global Payroll is composed of: a core payroll application and the country extension.

Rules Engine

Processing Framework

Country Rules

Country-SpecificReports

Country-Specific Pages

Country extensions:y Mexicoy Others

Global Payroll Core Engine

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Student Notes

Describing Global Payroll Functionality and Country Extensions Global Payroll is the common foundation and framework that organizations in every country can use to build rules. It determines the basic framework for payroll and absence processing. Country Extensions sit on top of the core engine and provide numerous business and statutory rules needed to run a payroll for a specific country.

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Describing Navigation to Country Extension Pages

Navigation to Country Extension Pages

All components specific to the Mexico country extension are identified by the MEX designation at the end of the component name. For example:

Pay Groups MEX Earn/Ded SOVRs MEX Enter Overtime MEX

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Student Notes

Example: Navigation Structure in PeopleSoft Enterprise HRMS This page illustrates the navigation structure in PeopleSoft Enterprise HRMS:

Navigation structure in PeopleSoft Enterprise HRMS

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Describing Global Payroll Frameworks

The Organizational Framework

This diagram displays the organizational framework for Global Payroll:

Pay Entity

Pay GroupPay Group

Payee

EligibilityGroup

EligibilityGroup

Element GroupElement GroupElement GroupElement Group

ElementElementElementElement

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Student Notes

Describing the Organizational Framework The organizational framework is made up of:

Elements Elements are the basic building blocks of Global Payroll. In effect, they are the foundation of this application.

Element Groups Element groups are logical groupings of elements for payroll or absence. A single element may be attached to several element groups.

Eligibility Groups Eligibility groups are logical groupings of element groups for a group of payees. Element groups can be attached to several eligibility groups.

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Payees A payee is anyone who is paid in Global Payroll.

Pay Group A pay group is a grouping of payees that will be paid in payroll processing. Usually a payee is in one pay group only, unless the payee is in multiple jobs.

Pay Entity A pay entity is the organization responsible for making payroll payments to payees.

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Describing Global Payroll Frameworks (continued)

Defining Pay Group Parameters in Mexico

Use the General Parameters page to define parameters for federal taxes and IMSS quotas at the pay group level.

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Student Notes

Page Used to Define General Parameters for a Pay Group in Mexico Page Name Navigation

General Parameters Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Framework, Organizational, Pay Groups MEX, General Parameters

Use this page to define general parameters for a pay group in Mexico:

General Parameters page

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The Processing Framework

This diagram displays the processing framework for Global Payroll:

Process List

SectionSection

ElementElementElementElement

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Student Notes

Describing the Processing Framework The processing framework is made up of:

Elements Elements are the basic building blocks of Global Payroll. In effect, they are the foundation of this application. A single element may be attached to several sections.

Sections Sections are a grouping of elements for payroll or absence processing. They determine the order in which the system processes elements. A single section may be attached to several process lists.

Process Lists Process lists control payroll processing at the highest level. They determine the order in which the system processes sections.

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The Calendar Framework

This diagram displays the calendar framework for Global Payroll:

Calendar Group IDWhich calendars are

going to be processed

Calendar IDWhich payees are going

to be processed

Run Type IDWhat Elements are


Calendar Period IDWhat pay period is


ProcessingStructure

OrganizationalStructure

Payroll Run Control(Run the payroll or

absence batch process)

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Student Notes

Describing the Calendar Framework The calendar framework consists of several parts:

Run types enable you to define what is being paid through a process list. Periods define the range of time for which the payment is being made. Calendars represent combinations of periods and run types. Calendar groups contain the calendars that you want to process at the same time.

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Activity 1: Creating Calendars

In this activity, you will review the activity overview and:

Create payroll calendars. Create absence calendars. See Global Payroll: Country Rules Mexico: Activity Guide, lesson 2, Business Process Overview, Activity 1: Creating Calendars.

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Student Notes

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Describing Processing Steps for Payroll

Steps for Processing Global Payroll

This diagram displays the payroll cycle in Global Payroll:

1IdentifyPayees

2Calculate

3 ReviewResults

4CorrectErrors

5FinalizeProcess

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Student Notes

Describing Processing Steps for Payroll 1. Identifying Payees: The identify phase is run once.

This phase identifies all payees eligible to be paid for the selected pay period based on the payee selection criteria defined for the calendar. If you add new hires, remove terminated payees, enter positive input, or make other changes that affect payee eligibility after running the identify phase, the system automatically detects the changes when you run the calculate phase. It does this by looking for iterative triggers that were generated when the changes were made.

Note. You must define any iterative triggers that you want the system to generate.

2. Calculating Payees: The system calculates one payee at a time, calendar by calendar.

If a calendar associated with a payee is segmented meaning the payee will receive more than one net payment for the calendar the system calculates the net amount for each segment before moving on to calculate the payees net amount in the next calendar. Only after the system has calculated a payees net pay across all calendars does it continue on to process the next person.

3. Reviewing Results: If the system runs into problems during the calculate program, the payee is placed in error.

Various inquiry pages can be used to review summary results, errors, and warning messages. In addition, a log file is produced each time the payroll system is run to let the system administrator know whether the COBOL process executed successfully.

4. Correcting Errors: In general, two types of errors can affect the payroll or absence run:

Batch processing errors. Data entry errors or omissions.

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You cannot finalize a payroll until you have dealt with all the errors. Once you correct all errors, you may recalculate your payroll results.

5. Finalizing Payroll Process: Finalizing a payroll has the effect of closing the payroll or absence run so that no further changes can be made.

The system updates the status codes, deletes processing messages, audit data, accumulator balances, and iterative triggers.

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Describing Sources of Information About Global Payroll

Using the Help Link

You can access related material by clicking the Help link in the top, right-hand corner of the application page.

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Student Notes

PeopleBooks Access The Help link takes you to the relevant information in the appropriate PeopleBook.

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Describing Sources of Information About Global Payroll (continued)

Implementation and Business Process Information

Use the PeopleSoft Enterprise Global Payroll 8.9 PeopleBook and the PeopleSoft Enterprise Global Payroll for Mexico 8.9 PeopleBook to find implementation and business process information for Global Payroll for Mexico, including:

ImplementationGetting Started

Information

NavigationInformation

ImplementationConcepts and

Tasks

Business ProcessConcepts and

Tasks

Appendixes andReport Samples

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Student Notes

Additional Information This table lists the locations of additional information in the PeopleSoft Enterprise Global Payroll 8.9 PeopleBook:

Location Type of Information

Getting started chapter This chapter provides general implementation information and references to additional sources of pertinent information, including:

Global Payroll business processes. Global Payroll integrations. Implementing Global Payroll.

Implementation chapters These chapters discuss implementation concepts and tasks:

Defining general element information. Defining earnings and deduction elements. Setting up accumulators.

Business process chapters These chapters discuss business process considerations that are helpful to both implementers and power users.

Appendixes and report samples

The appendixes provide reference information about the reports and workflows that are delivered with the system. Samples of reports appear at the end of the appendixes.

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Review

In this lesson, you learned that:

Global Payroll integrates with Human Resources, PeopleSoft Time and Labor and PeopleSoft General Ledger.

Country Extensions sit on top of the core engine and provide numerous business and statutory rules needed to run a payroll for a specific country.

All components specific to the Mexico country extension are identified by the MEX designation at the end of the component name.

The global payroll and absence processes share many of the same components, including element groups, eligibility groups, sections, process lists, run types, calendars, and calendar groups.

There are five payroll processing steps, identify, calculate pay, review results, correct errors, and finalize pay.

The PeopleSoft Enterprise Global Payroll 8.9 PeopleBook contains information for implementing Global Payroll.

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Student Notes

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Notes

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L e s s o n 3

Using Pay Elements

Objectives

By the end of this lesson, you will be able to:

Identify the major element types. Describe element creation, ownership, and maintenance. Describe the naming convention for delivered elements. Identify delivered elements.

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Student Notes

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U s i n g P a y E l e m e n t s L e s s o n 3


Identifying the Major Element Types

Element Types

This diagram illustrates the two element types:

Elements are the basic building blocks of Global Payroll. In Global Payroll, there are two element types:

Primary Elements

EarningsDeductionsAbsences

Supporting Elements

VariablesFormulasDurations

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Student Notes

Introduction to Elements This table lists the two types of elements in Global Payroll:

Element Type Elements in Category

Primary Elements Primary elements include earnings, deductions, absence entitlements, and absence takes.

Supporting Elements Supporting elements include all other element types, such as variables, formulas, and durations. Supporting elements do not stand alone, but are combined together with other elements to create more complex rules and elements.

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L e s s o n 3 U s i n g P a y E l e m e n t s


Describing Element Creation, Ownership, and Maintenance

Element Creation/PINs

When creating a new element:

Element Creation

Set up in the Global Payroll coreapplication pages.

The system assigns the elementa unique PIN.

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Student Notes

Common Terms Used in this Section

Term Definition

PIN Pay item name number. A unique number that the system generates and assigns to every element, including delivered elements and elements that you create. Global Payroll programs access and process elements by referring to their PIN numbers, not their names.

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Describing Element Creation, Ownership, and Maintenance (continued)

Element Ownership and Maintenance

This diagram illustrates the important element-related settings of the Earning Name page:

Earnings Name page

Countries that canuse the element.

Rule type of class forthe element.

Owner who createdand can update

element.

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Student Notes

Page Used to Define an Element Name Page Name Navigation

Earnings Name Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Elements, Payroll Elements, Earnings

Use this page to define the name, ownership, and maintenance parameters for an element.

Earnings Name page

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Note. All element names are defined in the same way and have the same Name page. Here, we show the Earnings Name page as an example, but the ownership and maintenance information provided here can be applied when defining any element.

Important Fields on the Earnings Name Page Element ownership and maintenance is an important part of running a payroll. You must be aware which elements you can configure or alter and which elements only PeopleSoft software can update. The following fields appear on the Earnings Name page:

Field Name Description

Owner Indicates whether the owner of the element is PeopleSoft or the participants organization. Most delivered elements in Mexico are PS Delivered/Not Maintained, and a few of them are PS Delivered/Maintained.

Class Indicates the type of rule for the element. Values are Customary, Not Classified, Sample Data, Statutory, and System Data.

Used By Values are All Countries and Specific Country. The Used By field value is also used in User Rules Profile security to determine which elements a user can access. All delivered elements for Mexico have a value of Specific Country.

Country If you selected Specific Country in the Used By field, the Country field appears. All delivered elements for Mexico use the value MEX.

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Describing the Naming Convention for Delivered Elements

Determining an Element Type and Function from Its Name

Understanding the naming convention developed for delivered elements can help you determine:

How UsedFunctional AreaElement Type

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Student Notes

How to Name a Primary Element Naming conventions exist for:

Primary elements, such as earnings and deductions. Supporting elements. Primary elements do not contain functional area codes or element type codes in their names. Instead, primary elements have names that identify their functions without the use of codes.

Example: Primary Element Naming The earnings element SDO POR HORA identifies this element as:

An earnings (SDO = sueldo) Hourly salary element (por hora)

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Describing the Naming Convention for Delivered Elements (continued)

Naming Conventions for Supporting Elements

The components of the naming convention for supporting elements are:

Element Naming Convention Definition

FF Functional area code.

TT Type of supporting element.

NAME Element usage or purpose.

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Student Notes

How to Name a Supporting Element The element naming convention enables you to determine how an element is used, the element type, and the functional area that it serves.

Within the-delivered elements for Global Payroll for Mexico, the naming convention FF TT NAME has been used for most supporting elements.

Example: Supporting Element Naming For example, IE VR ESTADO GC is a delivered variable. The naming convention is composed of the following components:

Element Naming Convention Component Definition

IE (Impuestos Estatales) Functional area (state taxes)

VR Variable

ESTADO GC Name of the element identifying the state (ESTADO) used in generation control (GC).

Why a Descriptive Name is Important The elements 30-character (maximum) description field provides a fuller description of what the element does. The NAME component can have variable lengths and a number of name components. You must make this code meaningful because there are places throughout the system where there is no description field.

Note. Many Mexican elements contain abbreviations that provide additional information about their use in the system. For example, AG is used to define Christmas Bonus elements and IM is used to define IMSS elements.

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Identifying Delivered Elements

Using the GP_ELEMENTS Query

You can view delivered elements for Global Payroll for Mexico by running the GP_ELEMENTS query. Youll enter the search criteria for the elements you want to view in the GP_ELEMENTS query. You can narrow your search by:

Query Name

Country

Category

ElementName

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Student Notes

Page Used to Search for and View Delivered Elements Page Name Navigation

Query Manager Reporting Tools, Query, Query Manager

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Use this page to search for the GP_ELEMENTS query:

Query Manager page

Use this query to view delivered elements for Global Payroll for Mexico:

GP_ELEMENTS query

Searching For Elements Youll enter the search criteria for the elements you want to view in the GP_ELEMENTS query. You can search for:

All delivered elements in Global Payroll for Mexico. A sub-category of delivered elements in Global Payroll for Mexico.

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Activity 2: Using the GP_ELEMENTS Query

In this activity, you will review the activity overview and:

Run the GP_ELEMENTS query to view the full list of elements for Mexico. Run the GP_ELEMENTS query to view the federal tax elements only. See Global Payroll: Country Rules Mexico: Activity Guide, lesson 3, Using Pay Elements, Activity 2: Using the GP_ELEMENTS Query.

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Student Notes

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Review

In this lesson, you learned that:

The two types of elements, primary and supporting, are the basic building blocks for Global Payroll.

You can maintain some elements and PeopleSoft software maintains others. You can use element-naming conventions when you create new elements to enable

easy ongoing support and usage.

You can run the GP_ELEMENTS query to view all delivered elements in Global Payroll for Mexico.

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Student Notes

Additional Resources This table lists additional resources that provide more details about the topics that we have discussed in this lesson:

Topic Cross-Reference

Element naming conventions

PeopleSoft Enterprise Global Payroll for Mexico 8.9 PeopleBook, Understanding Global Payroll for Mexico

GP_ELEMENTS query PeopleSoft Enterprise Global Payroll 8.9 PeopleBook, Viewing Delivered Elements and System Data

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Notes

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STU-1503-890-ENG 00

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Transcript of STU-1503-890-ENG 00