To assign PTU eligibility to an earning:Oracle HRMS uses two balances to calculate PTU amounts. These balances provide you the flexibility to select which earnings and days should contribute towards the basis for calculating the profit sharing amounts for each employee.
Eligible Compensation for Profit Sharing: Use this balance to track the earnings that should be included in the basis for profit sharing calculation. Oracle HRMS uses this balance to calculate each employee's average daily salary. It automatically feed this balance from all earnings elements that have the Eligible Compensation for Profit Sharing secondary classification associated with them.
Eligible Work Days for Profit Sharing: Use this balance to track the number of days worked by each employee in the year. Oracle HRMS uses this balance to calculate each employee's profit sharing portion based on number of days worked. It also uses this balance to calculate each employee's average daily salary for the profit sharing process.
You need to make sure the balance feeds are set up appropriately for these balances before you run the Profit Sharing Report. You can associate these secondary classifications with any existing earnings elements from the Balance Feeds window.
See: Creating Balance Feeds for Individual Elements
Note: Although you can modify the balance feeds for these Profit Sharing balances as often as desired before running the Profit Sharing Report, altering balance feeds affects derivation of balances and can cause reports and processes to run slower.
When defining a new earnings element, you associate these secondary classifications through the Element Design Wizard.
To assign PTU eligibility to an earning:Use the Element Design Wizard to create the new Earnings element.
Select Yes for the Eligible Compensation for Profit Sharing option.
Select Yes for the Eligible Worked Days for Profit Sharing option.
Note: Use the Balance Feed Control window to associate existing earnings elements with these balances.