When the payroll run encounters an event (such as a grade change) that you have defined as a proration event for the element being processed, it creates two run results for the element--one for the payroll period up to the day before the event, and one from the date of the event to the end of the period. You must define a formula to handle this proration processing for the element. There are two ways to do this:
Edit the element's Oracle Payroll formula so that it can handle proration, or
Create an additional formula to run after the Oracle Payroll formula only in periods when a proration event is encountered. You select this formula in the Proration Formula field on the Proration tab of the Element window.
Using a separate proration formula has the advantage that proration takes place even when you enter a pay value directly on the element entry. Embedding the proration calculation in the Oracle Payroll formula avoids the overhead of calling the second formula in periods when proration events occur.
If you want to write a proration formula, you must follow these rules:
Select the formula type Payroll Run Proration.
The formula inputs can be:
any of the element input values
prorate_start (DATE)
prorate_end (DATE)
The formula outputs can be:
any of the element input values
Your localization team may have created example formulas that you can use as the basis for your own formulas.