Oracle Payroll can hold an arrears balance for a deduction. It creates the input value Clear Arrears, which you use to specify whether the payroll run should attempt to clear the arrears. It also creates two special input values for the deduction. These input values are special in that they function without you ever seeing them or making entries to them. They receive their entries automatically during the payroll run.
US and Canadian users: Enable arrears balances through the Deductions window.
Mexican users: Enable arrears balances through the Element Design Wizard.
The special input value Not Taken holds any amount not taken for the deduction in the most recent payroll run. The special input value Arrears Contribution feeds the arrears balance.
To review an employee's arrears balance for a deduction, use the View Earnings and Deductions Balances window.
| Input Value Name | Purpose of Entry |
|---|---|
| Clear Arrears | Select Y if you want the payroll run to attempt to clear the amount held in arrears. Select N if you do not want the payroll run to attempt to clear the arrears. |
| Not Taken | Receives any amount not taken in the most recent payroll run. |
| Arrears Contribution | Receives results of the calculation of Scheduled Amount minus Pay Value for most recent run. Feeds this result to the arrears balance. |
Note: The system also makes use of the Adjust Arrears special input value in managing arrearage.
For more information about this input value, see: Changes to Earnings or Deductions Before a Run.
Example
The table below presents an example of how the entries automatically made to the these input values work to maintain the arrears balance.
Scheduled deduction amount per run: $50
Pay Value = Amount actually deducted in each run
Clear Arrears = Y
| Run | Pay Value | Not Taken | Arrears Contribution | Arrears Balance |
|---|---|---|---|---|
| 1 | 50 | 0 | 0 | 0 |
| 2 | 30 | 20 | 20 | 20 |
| 3 | 10 | 40 | 40 | 60 |
| 4 | 110 | 0 | -60 | 0 |
| 5 | 50 | 0 | 0 | 0 |