The aim of this post is to provide sample case study for beginners in Oracle Payroll. This case study will take you through the real time requirements in payroll for UAE legislation. In further posts we will be dealing with scenarios related to costing and resolution for issues during payroll support.
Note: All setups are effective 01-Jan-1951
1. Loan Setup
Case: In your organization, an employee is eligible to apply for a loan. Now the administrator will determine the number of installments required to recover this loan. This loan is internal and does not require payment to be made to a third party.Let us keep it very simple. Oracle Payroll by default provides elements for Handling Loans. You may use these or create you own, as I have done for simplicity sake.
Approach: You need a non-recurring element, something that the admin will add in the element entries to say that in this run the loan is to disbursed to the employee. Then recurring elements for deducting the installment in subsequent runs until the entire amount is repaid. Also the corresponding balances need to be created. Then we write the fast formula for processing the loan and validations if any. Define the formula result. Go to the element entry screen add the loan element and run the quick pay to check our setup.
Element and Balance Setup: Total Compensation>Basic>Element Description
Total Compensation>Basic>Balance
___________________________________________________________________________________
___________________________________________________________________________________
Total Compensation>Basic>Write Formula
Fast Formula: Loan Calculation
Type: Oracle Payroll
DEFAULT FOR PAY_PROC_PERIOD_START_DATE IS '1951/01/01 00:00:00' (date)
DEFAULT FOR PAY_PROC_PERIOD_END_DATE IS '4712/12/31 00:00:00' (date)
DEFAULT FOR EMP_HIRE_DATE IS '4712/12/31 00:00:00' (date)
DEFAULT FOR AMOUNT is 0
DEFAULT FOR STOP IS 'NO'
DEFAULT FOR LOAN_OUTSTANDING IS 0
DEFAULT FOR LOAN_INSTALLMENT IS 0
INPUTS ARE LOAN_AMOUNT,NUMBER_OF_INSTALLMENTS
IF LOAN_BALANCE_ASG_ITD = 0 AND PAY_PROC_PERIOD_START_DATE = ENTRY_START_DATE THEN
(
LOAN_OUTSTANDING = LOAN_AMOUNT
MSG = 'Loan is disbursed'
RETURN LOAN_OUTSTANDING,LOAN_AMOUNT,MSG
)
IF LOAN_AMOUNT - LOAN_BALANCE_ASG_ITD >0 THEN
(
LOAN_INSTALLMENT = LOAN_AMOUNT/NUMBER_OF_INSTALLMENTS
LOAN_OUTSTANDING = LOAN_AMOUNT - LOAN_BALANCE_ASG_ITD - LOAN_INSTALLMENT
IF LOAN_OUTSTANDING > 0 THEN
(
MSG = 'Loan Recovery in progress'
RETURN LOAN_OUTSTANDING,LOAN_INSTALLMENT,MSG
)
ELSE
(
MSG = 'Loan recovery completed'
STOP ='YES'
RETURN LOAN_OUTSTANDING,MSG,STOP
)
)
Formula Result: Total Compensation>Basic>Formula Results
Now we go to the employee assignment screen and add the entry as shown.Loan Repayment entry for employee in Feb
Note: This has already been processed, hence the check and end date.
Quick Pay Results: People>Enter and Maintain>
1.Select the employee
2. Click on Assignment
3. Click on Others
4. Click on Quick Pay
February:
March:
July:
Note: All setups are effective 01-Jan-1951
1. Loan Setup
Case: In your organization, an employee is eligible to apply for a loan. Now the administrator will determine the number of installments required to recover this loan. This loan is internal and does not require payment to be made to a third party.Let us keep it very simple. Oracle Payroll by default provides elements for Handling Loans. You may use these or create you own, as I have done for simplicity sake.
Approach: You need a non-recurring element, something that the admin will add in the element entries to say that in this run the loan is to disbursed to the employee. Then recurring elements for deducting the installment in subsequent runs until the entire amount is repaid. Also the corresponding balances need to be created. Then we write the fast formula for processing the loan and validations if any. Define the formula result. Go to the element entry screen add the loan element and run the quick pay to check our setup.
Element and Balance Setup: Total Compensation>Basic>Element Description
Total Compensation>Basic>Balance
___________________________________________________________________________________
Element Loan Repayment | |||||||||||||||||
| Classification | Voluntary Deductions | ||||||||||||||||
| Type | Recurring | ||||||||||||||||
| Termination Rule | Last Standing Process | ||||||||||||||||
| Other Options | Process in Run | Once in Each Period | |||||||||||||||
| Priority | 7550 | ||||||||||||||||
| Input Values | Number of Installments(Number) | Loan Amount(Money) | |||||||||||||||
| Element | Loan Outstanding | ||||||||||||||||
| Classification | Earnings | ||||||||||||||||
| Type | Non-Recurring | ||||||||||||||||
| Termination Rule | Last Standing Process | ||||||||||||||||
| Other Options | Process in Run | Indirect Result | |||||||||||||||
| Priority | 7561 | ||||||||||||||||
| Input Values | Outstanding Amount(Money) | ||||||||||||||||
| Balance | Loan | ||||||||||||||||
| Feeds | Loan Repayment(Add) | ||||||||||||||||
| Dimension | Assignment Inception to Date | Assignment Run | Element Entry Inception to Date |
___________________________________________________________________________________
Total Compensation>Basic>Write Formula
Fast Formula: Loan Calculation
Type: Oracle Payroll
DEFAULT FOR PAY_PROC_PERIOD_START_DATE IS '1951/01/01 00:00:00' (date)
DEFAULT FOR PAY_PROC_PERIOD_END_DATE IS '4712/12/31 00:00:00' (date)
DEFAULT FOR EMP_HIRE_DATE IS '4712/12/31 00:00:00' (date)
DEFAULT FOR AMOUNT is 0
DEFAULT FOR STOP IS 'NO'
DEFAULT FOR LOAN_OUTSTANDING IS 0
DEFAULT FOR LOAN_INSTALLMENT IS 0
INPUTS ARE LOAN_AMOUNT,NUMBER_OF_INSTALLMENTS
IF LOAN_BALANCE_ASG_ITD = 0 AND PAY_PROC_PERIOD_START_DATE = ENTRY_START_DATE THEN
(
LOAN_OUTSTANDING = LOAN_AMOUNT
MSG = 'Loan is disbursed'
RETURN LOAN_OUTSTANDING,LOAN_AMOUNT,MSG
)
IF LOAN_AMOUNT - LOAN_BALANCE_ASG_ITD >0 THEN
(
LOAN_INSTALLMENT = LOAN_AMOUNT/NUMBER_OF_INSTALLMENTS
LOAN_OUTSTANDING = LOAN_AMOUNT - LOAN_BALANCE_ASG_ITD - LOAN_INSTALLMENT
IF LOAN_OUTSTANDING > 0 THEN
(
MSG = 'Loan Recovery in progress'
RETURN LOAN_OUTSTANDING,LOAN_INSTALLMENT,MSG
)
ELSE
(
MSG = 'Loan recovery completed'
STOP ='YES'
RETURN LOAN_OUTSTANDING,MSG,STOP
)
)
Formula Result: Total Compensation>Basic>Formula Results
Now we go to the employee assignment screen and add the entry as shown.Loan Repayment entry for employee in Feb
Note: This has already been processed, hence the check and end date.
Quick Pay Results: People>Enter and Maintain>
1.Select the employee
2. Click on Assignment
3. Click on Others
4. Click on Quick Pay
February:
March:
July:
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