To set up costing of PTO accrual liability:Follow these setup steps if you use Oracle Payroll and you want the payroll run to calculate the change in employer liability for PTO, as well as the gross accrual.
For example, the payroll run might calculate the following changes to employer liability, using this calculation:
Current Liability Increment = (((YTD accrual + Current net accrual) * Current Rate of Pay) - ITD PTO liability)
| Payroll Run | ITD Liability | YTD Accrual | Current Pay Rate | Current Accrual | Absence | Current Net Accrual | Liability Increment |
|---|---|---|---|---|---|---|---|
| Run 1 | 0 | 0 | 10 | 4 | 0 | 4 | 40 |
| Run 2 | 40 | 4 | 10 | 4 | 5 | -1 | -10 |
| Run 3 | 30 | 3 | 12 | 4 | 0 | 4 | 54 |
To set up costing of PTO accrual liability:In the Element window, define an employer liability element. The only required input value is the pay value.
In the Balance window, create a liability balance fed by the pay value of the element you created in the previous step.
In the Formula window, edit the payroll formula that was generated for your accrual plan so that it calculates changes in employer liability. The formula has the name <accrual plan name>_ORACLE_PAYROLL. It contains a sample liability calculation, which you can edit to meet your requirements.
The formula must return the Current Liability Increment.
In the Formula Result Rules window, query the accrual plan element. You will see a processing rule associating this element with the payroll formula you edited in the previous step, and a result rule passing the accrual to the element that maintains the accrual balance. Create another result rule to pass the Current Liability Increment formula result to the pay value of the employer liability element.
Use the Element Link window to link the employer liability element and to cost it appropriately.