Calculation Rules for Deductions

During Deduction element definition, you can select a rule that determines how Oracle Payroll calculates the amount of the deduction. The system then generates the appropriate element input values. The available calculation rules are:

Note: All generated deductions include the Additional Amount and Replacement Amount input values for efficient management of one-time changes to the deduction amount. Use the pay value override to use these input values.

See: Changes to Earnings or Deductions Before a Run.

Canadian users: Specify calculation rules through the Deductions window.

Mexican users: Specify calculation rules through the Element Design Wizard.

Deductions with the Flat Amount Rule

Elements generated for deductions with this rule include an input value Amount, for entry of the deduction amount. No calculations are necessary to determine the amount.

Input Value for Flat Amount Amount Rule

Input Value Name Purpose of Entry
Amount Gives formula the deduction amount.

Deductions with the % Earnings Rule

Elements generated for deductions with this rule include a Percentage input value. The formula multiplies an employee's Regular Pay balance by the percentage figure entered in the input value.

You can modify the formula to reference a different earnings balance.

Input Value for Percentage Amount Rule

Input Value Name Purpose of Entry
Percentage Gives formula the percentage to use. (Formula references the run balance of Regular Pay.