To enter dates, names, and a classification for the element:Use the Element window to create an element to represent compensation and benefit types or earnings and deductions.
This procedure describes how to define elements using a Payroll responsibility (that is, a responsibility with the HR User Type profile option set to Payroll User or HR with Payroll User). If you are an HR-only user, you will not see certain fields relating to element processing information. You can just ignore the steps that apply to these fields.
Note: Depending on your localization and the types of element you want to create, you may not need to start from scratch in the Element window. Check which earnings and deductions are available in the template library in the Configuration Workbench. If these template elements do not meet your requirements, you may be able to generate earnings and deductions using Earnings and Deductions windows or the Element Design Wizard. You can use the Element window to further configure template elements and generated elements.
For the United States and Canada, see: Earnings and Other Payments Overview and Deductions Overview
For Mexico, see: Element Design Wizard
For UAE, see: Element Design Wizard
For Norway: For each element, you must enter the End of Year codes using the list of values provided in the Further Information field.
To enter dates, names, and a classification for the element:Set your effective date early enough to handle any historical element entries you want to make. Note that an element cannot be linked or entered until its start date.
Enter a unique:
Name
Reporting name
Start the names with a letter of the alphabet (not a number or symbol). The reporting name is a short identifier for reports and pay advices.
Enter a description for the element.
Select a Primary Classification.
This controls an element's processing priority and the balances it feeds. If you are defining a salary element for Salary Administration, you must select the classification Earnings.
To enter processing information for the element:Select the processing type. Select Recurring if an entry of this element applies in every period until the entry is ended, or Nonrecurring if an entry applies in one pay period only. The dates of the pay period are determined by the payroll to which the employee is assigned.
Note: If you are defining a salary element for salary administration, you must select the type Recurring. If you are defining a net-to-gross element you must select the type Nonrecurring.
Select a termination rule to determine how entries of the element are processed after termination of the employee:
Note: UK only: Always select Actual Termination for UK proration.
Actual Termination if you want recurring entries to close down on the date the employee leaves. For a nonrecurring element, select Actual Termination if you want the entries to close down at the end of the pay period in which the employee leaves, or on the date the assignment ends (the final process date) if this is earlier.
Final Close if you want the entries to stay open beyond the employee's leaving date so that you can continue to pay the employee.
If you are a Payroll user, you can also select:
Last Standard Process for all recurring and nonrecurring elements if you want their entries to close down on the Last Standard Process date or on the date the assignment ends (the final process date) if this is earlier. The Last Standard Process date defaults to the last day of the pay period in which the employee is terminated, but you can set it to a later period when you terminate an employee.
Select the Multiple Entries Allowed check box if you want to give an employee more than one entry of the element at the same time. If you are creating a net-to-gross element, you must select Multiple Entries Allowed.
Select the Additional Entries Allowed check box if you want to make occasional one-time entries of a recurring element (instead of, or in addition to, a normal recurring entry).
US and Canada only: The Additional Entry Allowed rule is not applicable for US and Canadian installations.
Select the Closed for Entry check box if you want to prevent any new entries being made for the element, either temporarily or permanently. This does not affect any existing entries of the element.
Attention: Use this feature with caution. When you perform certain important tasks in Oracle HRMS, the application may automatically create or delete element entries. These tasks include hiring and terminating people, and updating assignments. Therefore, if you check Closed for Entry on an element, this might prevent users terminating employees and updating assignments. If there are standard links for the element, it will also prevent users hiring people who are eligible for the element.
Select the Process in Run check box if you want the element to process in payroll runs.
Select the Once Each Period check box to ensure that only the first payroll run of each period processes entries of this element.
Note: If this check box is not available for your localization, you can select a ONCE_EACH_PERIOD skip rule for the element instead.
Select the Indirect Results check box if you want the element only to accept entries from indirect formula results. Leave the check box unchecked if you want to accept entries both from indirect formula results and from manual entries in the Element Entries window.
Select the Adjustment Only check box if you want to use the element only for creating balance adjustments.
Select the Third Party Payments check box if you want to use the element only for creating third party payments.
Overwrite the default priority number in the Priority field if you want to determine the order in which the element processes within its classification range. Lower numbers process before higher ones.
If the order of processing within the element classification is not important, you can accept the default priority number, which is the midpoint of the range.
Select a formula in the Skip Rule field if you have written a skip rule formula to determine the circumstances in which the element should be processed.
UK only: If you are using different run types, select the ONCE_EACH_PERIOD skip rule for all earnings, to ensure they are not processed by each child run type.
The default currency for element entry values is the currency defined for the Business Group. You can select a different currency for the element if required.
Oracle Payroll users only: Use the Advanced tab to enter further processing information if you are defining:
An earnings type, such as a bonus, that is to be taxed separately from the normal payroll run. The element can also be paid separately.
An earnings type that requires a net-to-gross calculation. For example, this applies to bonus payments that are a fixed net amount. Oracle Payroll calculates the gross amount needed to meet the net pay.
UK: A pre-tax deduction that you want to reduce if there is insufficient pay to cover the deduction along with taxes and court orders. This requires iterative processing.
Note: The Advanced tab may not be available for some localizations.
To define an element as a separate payment:On the Advanced tab, select the Separate Payment check box.
The Process Separate box is checked automatically.
UK users: Do not select this check box. This functionality is not currently available for UK Payroll.
To define an element to process separately:On the Advanced tab, select the Process Separate check box.
To define an element for net-to-gross calculation:On the Advanced tab, select the Gross Up check box.
The Iterative Flag and Process Separate boxes are checked automatically.
Select DEFAULT_GROSSUP in the Iterative Formula field. This formula controls the iterative calculation of the pay value, adjusting an input value as necessary to get a result that is defined to be close enough to the required net payment.
Note: After saving your element, choose the Iterative Rules button to specify how to use the formula results. Also choose the Exclude Balances button to select which balances are grossed up for the element (meaning that these deductions are paid by the employer).
Optionally, enter a value in the Iterative Priority field to determine the sequence in which elements are adjusted during iterative calculations. Elements with lower iterative priority values are adjusted first.
Select the Separate Payment box if you want the payment to be made separately from the regular payment. UK Payroll, Irish Payroll: Do not select this check box.
Save your work.
To set up iterative processing for a pre-tax deduction (UK):Check the Iterative Flag box.
Select PQP_GB_ITERATIVE_ARREARAGE in the Iterative Formula field.
Enter an Iterative Priority number in the range 1 to 1500. The element with the lowest iterative priority number is reduced first. If this deduction is reduced to zero and net pay is still insufficient to cover taxes and court orders, the element with the next lowest priority number is reduced, and so on.
Attention: Iterative priority numbers must be in the reverse sequence of the processing priority numbers. This means that the element that is processed first is reduced last.
Choose Iterative Rules, and select the L_stopper rule.
Oracle Payroll Users only except Ireland. If Advance Pay by Element is enabled in your legislation, use the Advance Pay tab to:
Indicate that an element may be processed as an Advance Pay element
Establish the processing conditions for your Advance Pay element.
To define an element as an Advance Pay element:On the Advance Pay tab, check the Mark as an Advance Pay Indicator check box.
This marks the element as an Advance Pay indicator. This means that when you run the Advance Pay by Element process, it will identify this that this element can be potentially processed as an Advance Pay element according to the processing conditions that you define.
To set the processing conditions for an Advance Pay element:On the Advance Pay tab:
Check the Include as an Advance Element check box if you want to process this element as an Advance Pay element.
If you want to specify a separate Advance Pay element, select this element from the list of available elements in Use Advance Element. If you leave Use Advance Element blank and do not specify an element, then you do not select a separate advance pay element. You can still process advance payments, but all the entries are held within your current earnings element rather than reported separately in an advance pay element.
Check the Deduct Advance Amount check box if you want to show the deduction for the advance in the current payroll period. Every advance payment has a deduction associated with it to bring the overall payroll amounts back into balance. You can use this check box to control the point at which the deduction should be applied.
If you want to specify a separate Deduction element, select this element from the list of available elements in Use Deduction Element. If you leave Use Deduction Element blank and do not specify an element, then you do not create a separate deduction element. You can still process deductions for advance payments, but all the entries are held within your current earnings elements rather than reported separately in a deduction element.
Note that when you create either an Advance Pay element, or a Deductions element, you must ensure that it exists for the same period of time as the underlying earnings element, and that the input values match those on the underlying element.
Check the Process Advance Entry in Run check box if you want to include this element in a payroll run, If you do not check this box, then the element does not process in a payroll run and is reported as information in your Statement of Earnings report.
For prerequisite steps to set up continuous calculation, see: Setting Up Continuous Calculation
To set up an element for continuous calculation:Choose the Recalculation tab and select a RetroPay element. This is an event group that defines the events that trigger proration for this element.
In some localizations, Oracle Payroll can calculate proportionate earnings amounts whenever payroll-relevant data changes during a payroll period. The Payroll Earnings and Deductions section describes the full setup steps for the relevant localizations. To enable proration for an element, choose the Proration tab.
To set up an element for proration:Choose the Proration tab and select a proration group. This is an event group that defines the events that trigger proration for this element.
Optionally, select a proration formula. Alternatively you can edit the element's payroll formula to handle proration.
Enter the Further Information field if:
Your Oracle localization team has set up additional fields for element definition
You are in the UK, and you use Oracle SSP/SMP
French Payroll
Select a group, which is the name by which this element, and the others in the group, appears as one line on the pay advice.
On the pay advice, most earnings and deductions are shown as a base, a rate, and an amount. Select the base unit if you want this displayed on the pay advice.
South African Payroll
Enter a clearance number for Statutory Information and Deduction elements, if applicable. This number appears on the tax certificate.
Kuwait Payroll
Select a deduction type for the Deductions elements. This information is used by the PIFSS report.
New Zealand Payroll:
If you want to display custom elements with the classification of Employer Charges in the Online Payslip, SOE form, and Statement of Earnings under Employer Superannuation Contribution section, select Yes in the Super Section Display field.
Choose Input Values to define input values for the element
See: Defining an Element's Input Values
Choose Balance Feeds to select balances you want this element to feed
Click Balance Feed Control to add or remove secondary element classifications for this element.
Mexico only: Click this button to attach sub-classifications to your element.
Choose Frequency Rules to enter frequency rules to determine when the element should be processed.
For a net-to-gross element, choose Exclude Balances to select the deductions to be paid by the employer.
For a net-to-gross element, or any other element that is processed iteratively, choose Iterative Rules to specify how to use the Iterative Formula results.
Choose the Extra Information button to enter extra attribution for the element. You can link as much attribution as you need to an element.
Note: You can only access Extra Information types if your system administrator has set them up for your responsibility.
If Payslip Modeling feature has been enabled for your localization, you can specify whether to enable the element for payslip modeling. If you select No, the elements will not be available for the users during payslip modeling process.
If Payslip Modeler has been enabled, then you can specify whether to enable the element for payslip modeling. If you select No, the element will not be available for the users during payslip modeling process.
To enable an element to be available for payslip modeling, query the element and select Yes in the Enable Simulation field in the Element Extra Information window. You can select input values of this element which are to be made available for simulation. Only user enterable input values are available for Payslip modeling. Ensure to select all mandatory input values to be made available for simulation, if the element is available for simulation.
If the Multiple Entries checkbox is enabled for an element, then you cannot use this element for payslip modeling. Instead, create a copy of the base element, enter input values, attach the appropriate formulas and balances as the base element and then use this element for payslip modeling. Ensure that this new element is not used for payroll run.
Note: Please note that there is a restriction for predefined elements being used for payslip modeling. For predefined elements, if you setup the details in one business group, then these details will be accessible to other business groups. For example, for predefined element Regular Salary element, if you want to enable Input Value A for one Business Group and Input Value B for another Business group, then this is not possible. This limitation occurs for predefined elements applicable to all localizations. Therefore, if there are multiple business groups, then you must define a single structure for the predefined elements. If there are custom elements, then the custom elements are accessible only for that business group.
To exclude the element from a run type:Choose the Usages button if you want to exclude this element from a run type, or combination of run types.
Select the run type or combination of run types from which you want to exclude this element.
Note: For Norway: You must select the Employer Contributions run type to exclude the elements.
Select the effective dates for your exclusions.
Save your work.