Through the Element Design Wizard, you select a rule that determines how Oracle Payroll calculates the amount of the earnings or payment. The system then generates the appropriate element input values. The available calculation rules are:
Flat Amount
Hours * Rate
Days * Rate
Percentage of Regular Earnings
Elements generated for earnings or non-payroll payments with this rule includes an Amount input value for entry of an amount. No calculations are necessary to determine the amount of this earnings or payment.
Input Value for Amount Rule Flat Amount
| Input Value Name | Purpose of Entry |
|---|---|
| Amount | Gives a formula for the earnings or payment amount. |
The elements generated for earnings with this rule include the Hours Worked, Rate, and Multiple input values. Hours Worked holds the number of hours worked at a particular Rate. Multiple represents a multiple for the calculation. For example, for a pay uplift of 5% above the standard, make an entry of .05 in this input value.
Earnings with the Rule Hours * Rate
| Input Value Name | Purpose of Entry |
|---|---|
| Hours Worked | Gives a formula for the hours worked at each rate. |
| Rate | Gives a formula for the rates to use. Entries here override Rate Code entries. If you leave this field empty, Oracle Payroll derives the rate based on:
|
| Multiple | Gives a formula for the multiplier to use for the calculation. |
Use this calculation rule for elements that require the number of days worked multiplied by the daily pay rate. It includes the Days Worked and Rate input values. Days Worked holds the number of hours worked at a particular Rate.
Earnings with the Rule Days * Rate
| Input Value Name | Purpose of Entry |
|---|---|
| Days Worked | Gives a formula for the days worked at each rate. |
| Rate | Gives a formula for the rates to use. Entries here override Rate Code entries. If you leave this field empty, Oracle Payroll derives the rate based on:
|
Example
For a worker who paid bi-weekly and worked 10 days at $50.00 per day, you would enter a value of 10 in the Days field and 50.00 in the Rate field in the employee's assignment record.
Note: The formula for this rule can calculate the earnings to be paid if no input value is entered for either Days or Rate. This requires a definition of a Salary Element that does NOT process in payroll (Process in Run option set to "NO"). To determine the number of days to pay, the system will try to locate the employee's work schedule. If there is no work schedule on record, it uses a default work schedule as the number of days to pay.
To set this up:
Define a salary element named MX_Monthly with the "Process in Run" option deselected.
Associate it to a salary basis called MX_Month.
Attach this salary basis to the employees' records along with the Days * Rate element.
The system will now annualize the monthly salary, annualize the pay frequency (Weekly/Bi-weekly:364 days - Monthly/Semi-Monthly:360 days) and determine the daily rate of pay.
Example
An employee is paid $5,428.80 monthly salary. You enter MX_MONTHLY 5428.80 in the Salary Administration form off the Assignment window. You select Days * Rate in the Elements Entries window but do not specify any data in the fields.
Oracle Payroll computes the number of days to be paid (30) and determines the daily pay rate ($180.96).
Oracle Payroll generates elements for earnings with this rule with the input value Percentage, for entry of the percentage to use in the calculation.
Input Value for Amount Rule Percentage
| Input Value Name | Purpose of Entry |
|---|---|
| Percentage | Gives a formula for the percentage to use. |
For a salaried employee, the formula for this rule locates the employee's regular monthly earnings as an entry in the Monthly Salary input value (Periodic Salary in Canada) of the earnings Regular Salary.
For a waged employee, it calculates the regular earnings in a pay period by finding the employee's wage rate and multiplying it by the hours normally worked in a pay period. It locates the employee's usual hours worked by referencing the work schedule or, if there is none, the standard working hours for their assignment. It finds the wage rate by referencing, in this order:
The employee's salary basis.
The rate code entered for the employee for the earnings Regular Wages.
The rate entered for the employee for Regular Wages.
See: HR Organizations: Entering a Work Schedule and Business Groups and HR Organizations: Work Day Defaults