For Salary Administration, you need at least one salary earnings element for each group of employees whose salary is quoted on the same basis (such as hourly or monthly). You then link these elements to components of employee assignments, to determine which employees are eligible for a particular element. Oracle Payroll can process these elements in payroll runs to generate salary amounts for employees. A third party payroll can take information from these elements for use in generating amounts for employees.
If you are an HR-only customer, you need to work closely with your Payroll Department to ensure that the elements used in Salary Administration are correctly set up for transmission of information to whatever payroll is in use.
Some HR localizations have certain predefined earnings elements already set up when you receive your HR system. For example, US-HRMS includes the predefined earnings elements Regular Salary and Regular Wages. Depending on your requirements, you may decide to use some predefined elements to represent actual earnings types in your system.
If you are an Oracle Payroll user, you will also get other predefined elements.
However, predefined elements cannot be changed in any way. For this reason, you may decide to use the predefined elements simply as models for other earnings elements that you define to meet the particular requirements of your enterprise.
If predefined elements are not available to represent all the earnings types and salary bases you need for your Salary Administration setup, you must create your own elements for this purpose.