There are four seeded formulas (of formula type Accrual) for calculating accruals. Each repeatedly calls another formula (of type Accrual Subformula), in a loop, to calculate the accrual for each accrual period. There is a Carry Over formula supplied to use with each Accrual formula. The top level seeded Accrual formulas are:
PTO_PAYROLL_BALANCE_CALCULATION
PTO_SIMPLE_BALANCE_ MULTIPLIER
PTO_ROLLING_ACCRUAL
PTO_HD_ANNIVERSARY_BALANCE
The formulas with "Balance" in their names can be called from the payroll run to maintain a balance of gross accruals. See: Accrual Balances Maintained By the Payroll Run.
Note: There are also two seeded formulas called PTO_PAYROLL_CALCULATION and PTO_SIMPLE_MULTIPLIER. These incorporate the same rules as PTO_PAYROLL_BALANCE_CALCULATION and PTO_SIMPLE_BALANCE_ MULTIPLIER, except that they cannot be called from the payroll run to maintain a balance of gross accruals. We recommend that you use the formulas that support balances so you can use balances now or in the future.
There is also a seeded Ineligibility formula:
PTO_INELIGIBILITY_CALCULATION
You may require an Ineligibility formula if you use BEE (Batch Element Entry) to enter absences against an accrual plan. BEE validation must ascertain whether an employee is eligible to use accrued PTO on the effective date of an absence entry in a batch line. First it checks the Accrual Plan table, so if you enter the period of ineligibility in the Accrual Plan window, you do not need to create an Ineligibility formula.
If there is no ineligibility information in this table, BEE validation checks whether there is an Ineligibility formula to call. You need an Ineligibility formula if you use BEE and you calculate the period of ineligibility within your Accrual formula, rather than entering it in the Accrual Plan window. This formula is only used by BEE.
Note: If you use the seeded formulas, you do not need an Ineligibility formula, because these formulas take the ineligibility period from the Accrual Plan table.
This section describes the main features of each of the seeded formulas. The rules are summarized, later, in tables.
This formula calculates accruals in the same way as the accrual function in earlier releases of Oracle HRMS. It calls another formula which is called PTO_PAYROLL_PERIOD_ACCRUAL. It is designed to be used with the Carry Over formula PTO_PAYROLL_CARRYOVER.
These formulas are based on the following rules:
An accrual term of one calendar year, starting 1 Jan. So, accrual calculations restart at the beginning of each calendar year.
An accrual frequency based on the participant's pay periods. So, employees on a monthly payroll accrue time each month, employees on semi-monthly payrolls accrue time twice each month, and so on. PTO accrual occurs automatically for each eligible plan participant on the last day of his or her pay period, independently of any payroll run.
Accrual amounts and ceiling are determined by length of service.
Accruals are prorated for suspended assignments.
Carry over is always effective on 31 Dec of the plan year being processed. So, if you run the Carry Over process and specify the parameters '15 January 2000' and 'Previous' (plan year), the formula calculates the carry over for the year 1 Jan to 31 Dec 1999 and the result has the effective date 31 Dec 1999.
Carry over expires at the end of the plan year. So carried over time with the effective date 31 Dec 1999 must be used before 31 Dec 2000.
Maximum carryover depends on length of service bands.
This is a simple formula to provide a useful starting point for your own accrual plans. It calls another formula, called PTO_SIMPLE_PERIOD_ACCRUAL. It is designed to be used with the Carry Over formula PTO_SIMPLE_CARRYOVER.
These formulas are based on the following rules:
An accrual term of one calendar year, starting 1 June. So, accrual calculations restart at the beginning of each June.
An accrual frequency of one month.
Accrual amounts and ceiling are fixed within the formula.
Carry over is always effective on 31 May of the plan year being processed.
Carry over expires at the end of the plan year. So carried over time with the effective date 31 May 1999 must be used before 31 May 2000.
Maximum carry over is fixed within the formula.
This formula is very similar to PTO_SIMPLE_BALANCE_MULTIPLIER, but the accrual start date is the anniversary of the employee assignment's hire date.
Note: Notice that the accrual term starts on the anniversary of the hire date. It is not affected by the entry of a continuous service date for an employee on enrollment in the plan. The continuous service date affects length of service calculations (for accrual bands and calculation of period of ineligibility), but it does not affect the accrual term.
This is an example formula for an accrual plan that does not have a fixed term start date. It calls the formula PTO_ROLLING_PERIOD_ACCRUAL. It is designed to be used with the Carry Over formula PTO_ROLLING_CARRYOVER. (Although carry over is not relevant to rolling accrual plans, you must select this formula for your accrual plan. It returns an effective date to the Absence Detail window.)
These formulas are based on the following rules:
An accrual term of one calendar year, with no fixed start date. Accruals are calculated for the previous 12 months.
An accrual frequency of one month.
Accrual amounts and ceiling are fixed within the formula.
Carry over is not relevant, since the accrual term never ends, but rolls forward. Time is lost if it is not used within 12 months.
The following tables summarize the rules incorporated in the seeded Accrual formulas.
| All Seeded Formulas |
|---|
| One year |
| PTO_PAYROLL_BALANCE _CALCULATION | PTO_SIMPLE_BALANCE_MULTIPLIER and PTO_HD_ANNIVERSARY_BALANCE | PTO_ROLLING _ACCRUAL |
|---|---|---|
| 1 January | 1 June (PTO_SIMPLE_BALANCE_MULTIPLIER) Anniversary of hire date (PTO_HD _ANNIVERSARY _BALANCE) | No fixed date; accruals calculated for preceding 12 months |
| PTO_PAYROLL_BALANCE _CALCULATION | PTO_SIMPLE_BALANCE_MULTIPLIER, PTO_HD_ANNIVERSARY_BALANCE, and PTO_ROLLING_ACCRUAL |
|---|---|
| Payroll period | Monthly |
| PTO_PAYROLL_BALANCE _CALCULATION | PTO_SIMPLE_BALANCE _MULTIPLIER, PTO_HD_ANNIVERSARY_BALANCE, and PTO_ROLLING _ACCRUAL |
|---|---|
| Depends on length of service accrual bands | A fixed amount per month (2 days) |
Note: For all the formulas, the accrual ceiling is a limit at which the employee will accrue no more time. However, net accrual can exceed the ceiling if you have made an entry of the Carry Over element, or another adjustment element affecting net calculation rules. If you have adjusted net accrual so that it exceeds the ceiling, the employee will accrue no time until net accrual falls below the ceiling.
| PTO_PAYROLL_BALANCE _CALCULATION | PTO_SIMPLE_BALANCE _MULTIPLIER, PTO_HD_ANNIVERSARY_BALANCE, and PTO_ROLLING _ACCRUAL |
|---|---|
| Depends on length of service accrual bands | Set within the formula to 20 days |
| All Seeded Formulas |
|---|
| Uses continuous service date (if present) or hire date. Note: continuous service date is entered using an input value on the accrual plan element. |
| PTO_PAYROLL_BALANCE _CALCULATION | PTO_SIMPLE_BALANCE _MULTIPLIER, PTO_HD_ANNIVERSARY_BALANCE, and PTO_ROLLING _ACCRUAL |
|---|---|
| Choice of start rules on Accrual Plan form: hire date, or six months after hire date, or 01 Jan after hire date Accrual starts in the first accrual period after the chosen date (or plan enrollment date if this is later). | Accrual starts in the first accrual period after hire date or plan enrollment date, whichever is later. |
| All Seeded Formulas |
|---|
| Accrued amounts are not credited until end of period of ineligibility (entered on Accrual Plan form), which is calculated from the hire date (or continuous service date if this was entered). Note that accrued amounts are not carried forward if the end of the accrual term falls within the ineligibility period. |
| PTO_PAYROLL_BALANCE _CALCULATION | PTO_SIMPLE_BALANCE _MULTIPLIER and PTO_HD_ANNIVERSARY_BALANCE | PTO_ROLLING _ACCRUAL |
|---|---|---|
| Sums accruals in all full pay periods of the year ending on or before the calculation date; takes account of any employee termination date, accrual start rules, ineligibility period, assignment status, and accrual ceiling. | Sums accruals in all full months of the year ending on or before the calculation date; takes account of any employee termination date, ineligibility period, and accrual ceiling. | Sums accruals in the 12 months ending on or before the calculation date; takes account of any employee termination date, ineligibility period, and accrual ceiling. |
| PTO_PAYROLL_BALANCE _CALCULATION | PTO_SIMPLE_BALANCE _MULTIPLIER and PTO_HD_ANNIVERSARY_BALANCE | PTO_ROLLING _ACCRUAL |
|---|---|---|
| Calculates the number of working days (Monday to Friday) in the payroll period and checks assignment status for each day. Multiplies normal accrual rate by active days divided by working days, to prorate the accrual. | No processing of assignment status. | No processing of assignment status. |
If you write your own formulas (perhaps using the simple multiplier or rolling accrual formula as a basis) you can change any of these rules and add new rules as required. However, your formulas must return certain values and must check for certain conditions (such as employee termination) to avoid errors.
For information about required formula content, see: Writing Formulas for Accrual Plans.
For a sample accrual formula and suggestions on how to edit it to incorporate a whole range of plan rules, see: Sample Accrual Formula.