Version – 3
Sikandar Hayat Awan Pakistan
Oracle Applications R12 – HRMS & Payroll
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SEND US YOUR COMMENTS The document is composed by using Oracle R12 (RU3 with Global HRMS Patch Applied) on Linux Red Hat AS 4 update 5 so you may find minor differences of screens or options if you are not using the same version of Oracle Applications. Please suggest if you think any major feature is missing and you think that should also be part of this document. You can post your feedback directly on the web site www.erpstuff.com or email to
[email protected]. If both options are not working due to any reason then please email directly to
[email protected]. Your comments and feedback will be really appreciated. Thanks
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Preface Anyone who is interested to learn, teach Oracle HRMS and Payroll can use this document for his/her as a basic reference document. Although the document will cover most of the required but this is not the whole Oracle HRMS. So please consider it as a basic or reference document. I will also recommend reading the Oracle Documentation provided by Oracle of each module. Pre Requisites o Oracle Applications R12 RU3 instance access o Human Resource Concepts Document Change Log
Date 21-Jan-08
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Version 3
Description HRMS and Payroll incorporated.
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Contents CONTENTS .................................................................................................................................................................................. 4 WORK STRUCTURES ............................................................................................................................................................... 7 1 - RESPONSIBILITY & USER.............................................................................................................................................. 8 1. 2.
DEFINE HRMS RESPONSIBILITY .......................................................................................................................................... 8 HRMS USER DEFINITION .................................................................................................................................................... 9
2 - KEY FLEXFIELDS DEFINITIONS ................................................................................................................................. 12 1. 2. 3. 4. 5. 6.
GRADE KEY FLEXFIELD DEFINITION ................................................................................................................................... 12 JOB KEY FLEXFIELD DEFINITION ........................................................................................................................................ 18 COST ALLOCATION KEY FLEXFIELD DEFINITION.................................................................................................................. 25 POSITION KEY FLEXFIELD DEFINITION ............................................................................................................................... 28 PEOPLE GROUP KEY FLEXFIELD DEFINITION ....................................................................................................................... 33 COMPETENCE KEY FLEXFIELD DEFINITION .......................................................................................................................... 37
3 - KEY FLEXFIELDS VALUES ............................................................................................................................................. 46 1. 2. 3. 4. 5.
GRADE KEY FLEXFIELD VALUES .......................................................................................................................................... 46 JOB KEY FLEXFIELD VALUES............................................................................................................................................... 48 POSITION KEY FLEXFIELD VALUES...................................................................................................................................... 51 PEOPLE GROUP KEY FLEXFIELD VALUES ............................................................................................................................. 54 COMPETENCE KEY FLEXFIELD VALUES ................................................................................................................................ 56
4 - LOCATION.......................................................................................................................................................................... 61 1.
LOCATION DEFINITION ...................................................................................................................................................... 61
5 - BUSINESS GROUP (BG) ................................................................................................................................................ 61 1.
BUSINESS GROUP (BG) DEFINITION .................................................................................................................................. 63
6 - PROFILES ........................................................................................................................................................................... 72 1. 2. 3.
SETTING HR: SECURITY PROFILE ...................................................................................................................................... 72 SETTING HR:BUSINESS GROUP PROFILE ............................................................................................................................ 73 SETTING HR:USER TYPE PROFILE ..................................................................................................................................... 74
7 - ORGANIZATIONS ............................................................................................................................................................ 76 1.
DEPARTMENTS (HR ORGANIZATION) DEFINITION .............................................................................................................. 76
8 - JOBS CREATION .............................................................................................................................................................. 79 1.
JOBS ENTRY ...................................................................................................................................................................... 79
9 - POSITIONS CREATION ................................................................................................................................................. 81 1.
POSITIONS ENTRY ............................................................................................................................................................. 81
10 - GRADES CREATION ...................................................................................................................................................... 85 1.
GRADES ENTRY ................................................................................................................................................................. 85
11 - POSITION HIERARCHIES........................................................................................................................................... 87 1. 2.
POSITION HIERARCHY DEFINITION .................................................................................................................................... 87 POSITION DIAGRAMMER .................................................................................................................................................... 92
PEOPLE MANAGEMENT ........................................................................................................................................................ 93 12 - EMPLOYEE CREATION ................................................................................................................................................. 94 4/157 All Rights Reserved 2006-08
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EMPLOYEE CREATION ........................................................................................................................................................ 94
PAYROLL SETUP ................................................................................................................................................................... 102 13 - INTRODUCTION TO ORACLE PAYROLL ............................................................................................................... 103 1. 2. 3. 4. 5. 6. 7. 8.
QUICKPAY ....................................................................................................................................................................... 103 BATCH PROCESSING ........................................................................................................................................................ 103 PAYMENT METHODS ........................................................................................................................................................ 103 CURRENCY ...................................................................................................................................................................... 103 PAYROLL(S) .................................................................................................................................................................... 103 PAY DATE / CHEQUE (CHECK) DATE ................................................................................................................................ 103 SCHEDULED RUN ............................................................................................................................................................. 103 CUT OFF DATE ................................................................................................................................................................ 104
14 - CONSOLIDATION SET ............................................................................................................................................... 105 1.
DEFINE CONSOLIDATION SET .......................................................................................................................................... 105
15 - PAYMENT METHODS .................................................................................................................................................. 106 1.
DEFINE PAYMENT METHODS ............................................................................................................................................ 106
16 - ELEMENTS...................................................................................................................................................................... 108 1. 2. 3. 4. 5. 6.
DEFINE ELEMENTS ........................................................................................................................................................... 108 DEFINING AN ELEMENT'S INPUT VALUES .......................................................................................................................... 110 ELEMENT FOR COLA (COST OF LIVING ALLOWANCE) ....................................................................................................... 112 ELEMENT FOR COLA (COST OF LIVING ALLOWANCE) ....................................................................................................... 113 ELEMENT FOR COMPANY CAR ........................................................................................................................................... 115 ELEMENT FOR MONTHLY SALARY...................................................................................................................................... 116
17 - SALARY BASIS ............................................................................................................................................................. 118 1.
DEFINE SALARY BASIS ..................................................................................................................................................... 118
18 - PAYROLL ........................................................................................................................................................................ 120 1.
DEFINE PAYROLL ............................................................................................................................................................. 120
19 - ELEMENT LINK ............................................................................................................................................................. 123 1. 2. 3. 4. 5.
DEFINE ELEMENT LINK .................................................................................................................................................... 123 LOCATION ALLOWANCE ELEMENT LINK ............................................................................................................................. 123 COLA ELEMENT LINK ...................................................................................................................................................... 124 COMPANY CAR ELEMENT LINK.......................................................................................................................................... 125 UNION FUND DEDUCTION ELEMENT LINK ......................................................................................................................... 130
SALARY ADMINISTRATION ............................................................................................................................................. 132 20 - SALARY ADMINISTRATION..................................................................................................................................... 133 1. 2.
SALARY BASIS AND PAYROLL ASSIGNMENTS ..................................................................................................................... 133 SALARY ADMINISTRATION ................................................................................................................................................ 137
PAYROLL PROCESSING ..................................................................................................................................................... 141 21 - PAYROLL PROCESSING INTRODUCTION ........................................................................................................... 142 1. 2. 3. 4. 5. 6. 7.
PAYROLL PROCESSES ....................................................................................................................................................... 142 PROCESSING ACTIVITIES ................................................................................................................................................. 142 RETRO PAY & ADVANCE PAY ........................................................................................................................................... 142 PROCESS ROLLBACK ........................................................................................................................................................ 142 RETRY A PAYROLL RUN .................................................................................................................................................... 143 REVERSING A PAYROLL RUN............................................................................................................................................. 143 PAYMENT INVOICE ........................................................................................................................................................... 143
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22 - QUICKPAY ..................................................................................................................................................................... 144 1.
QUICKPAY ....................................................................................................................................................................... 144
23 - BATCH PROCESSIING ............................................................................................................................................... 151 1. 2. 3. 4.
PAYROLL RUN PROCESS ................................................................................................................................................... 151 PREPAYMENT PROCESS .................................................................................................................................................... 153 COSTING PROCESS .......................................................................................................................................................... 154 TRANSFER TO GL ............................................................................................................................................................ 155
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Work Structures
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1 - Responsibility & User 1. Define HRMS Responsibility 1.1.
To define HRMS responsibility open the Responsibilities screen, Sys Admin: Security > Responsibility > Define
1.2.
Enter the following information on the screen, Field
Value
Responsibility Name
XX HRMS
Application
Human Resources
Responsibility Key
XX_HRMS
Description
XX HRMS Super User
Effective Date From
Default (Current Date)
Data Group Name
Standard
Data Group Application
Human Resources
Menu
GLB SHRMS Navigator
Request Group Name
Global SHRMS Reports & Process
Request Group Application
Human Resources
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1.3.
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Save the data.
2. HRMS User Definition 2.1. 2.2.
The next step is to assign the above defined responsibility to a user who will have access to HRMS. Here instead of creating a new user we will assign the responsibility to our earlier created user at the time of GL configuration that is XX USER. Open the Users form, Sys Admin: Security > User > Define
2.3.
After searching the XX USER we will attach the Responsibility XX Fixed Assets created above with this user. Field
Value
Responsibility
XX HRMS
Application
Human Resources
Security Group
Standard
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Save the data. Switch the responsibility to XX HRMS responsibility and you will get the following menu.
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2 - Key Flexfields Definitions Points to Consider Before creating Key Flexfields consider the following points, o o o o o o o
Plan the Structure Plan number of segments of each Key Flexfield Segment Size Segment Values Validations Naming Conventions Future Changes Considerations
1. Grade Key Flexfield Definition 1.1.
Open the Key Flexfield Segments form, Sys Admin: Application > Flexfield > Key > Segments
1.2. 1.3. 1.4.
Search for Grade Flexfield. Insert a new record by selecting New from the toolbar. Enter the following information, Field Code Title Description (Optional)
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Value XX_GRADE_FLEXFIELD XX GRADE FLEXFIELD XX Grade Flexfield for demo.
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1.5.
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Click Segments (button), Field Number Name Windows Prompt Column
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Value 1 Grade Name Grade Name SEGMENT1
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1.6.
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Click Value Set (button) and enter following information, Field Value Set Name Description List Type Security Type Format Type Maximum Size Uppercase Only (A-Z) Validation Type
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Value XX_GRADENAME_VS XX Grade Name value set for demo. List of Values No Security Char 20 Checked (Yes) Independent
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1.7. 1.8. 1.9.
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Save and close the screen. Enter the Value Set name in the Value Set field on segments Summary screen. In the 2nd lines enter following information, Field Number Name Windows Prompt Column
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Value 2 Grade Level Grade Level SEGMENT2
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1.10. Click Value Set Open (button) and enter following information, Field Value Set Name Description List Type Security Type Format Type Maximum Size Uppercase Only (A-Z) Validation Type
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Value XX_GRADELEVEL_VS XX Grade Level value set for demo. List of Values No Security Char 2 Checked (Yes) Independent
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1.11. 1.12.
Save and close the screen. Enter the Value Set name in the Value Set field on segments Summary screen.
1.13. 1.14.
Save and close the screen. Enable Freeze Flexfield Definition and Allow Dynamic Inserts checkboxes.
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1.15.
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Click OK (button) and close the form. The Flexfield will be compiled.
1.16. Click OK (button).
1.17. Click OK (button).
2. Job Key Flexfield Definition 2.1.
Open the Key Flexfield Segments form
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Sys Admin: Application > Flexfield > Key > Segments 2.2. 2.3. 2.4.
Search for Job Flexfield. Insert a new record by selecting New from the toolbar. Enter the following information, Field Code Title Description (Optional)
2.5.
Value XX_JOB_FLEXFIELD XX JOB FLEXFIELD XX JOB Flexfield for demo.
Click Segments (button), Field Number Name Windows Prompt Column
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Value 1 Job Name Job Name SEGMENT1
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2.6.
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Click Value Set (button) and enter following information, Field Value Set Name Description List Type Security Type Format Type Maximum Size Uppercase Only (A-Z) Validation Type
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Value XX_JOB_NAME_VS XX JOB Name value set for demo. List of Values No Security Char 20 Checked (Yes) Independent
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2.7. 2.8. 2.9.
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Save and close the screen. Enter the Value Set name in the Value Set field on segments Summary screen. In the 2nd lines enter following information, Field Number Name Windows Prompt Column
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Value 2 Job Code Job Code SEGMENT2
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2.10. Click Value Set (button) and enter following information, Field Value Set Name Description List Type Security Type Format Type Maximum Size Uppercase Only (A-Z) Validation Type
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Value XX_JOB_CODE_VS XX JOB Code value set for demo. List of Values No Security Char 20 Checked (Yes) Dependent
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2.11.
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Save the data and click Edit Information (button) and enter the following information. Field Independent Value Set Name Description Dependent Default Value Description
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Value XX_JOB_NAME_VS Will be auto displayed. NONE None
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2.12.
Enter the Value Set name in the Value Set field on segments Summary screen.
2.13. 2.14.
Save and close the screen. Enable Cross-Validation Segments, Allow Dynamic Inserts and Freeze Flexfield Definition checkboxes.
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Note: The next few screens are same as covered in the Grade section.
3. Cost Allocation Key Flexfield Definition 3.1.
Open the Key Flexfield Segments form Sys Admin: Application > Flexfield > Key > Segments
3.2. 3.3. 3.4.
Search for Cost Allocation Flexfield. Insert a new record by selecting New from the toolbar. Enter the following information, Field Code Title Description (Optional)
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Value XX_COST_ALLOCATION_FLEXFIELD XX COST ALLOCATION FLEXFIELD XX Cost Allocation Flexfield for demo.
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3.5.
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Click Segments (button),
Note: Here we will use Value Set we defined for General Ledger. Field Number Name Windows Prompt Column Value Set Flexfield Qualifier
1 Cost Center Cost Center SEGMENT1 XX_Cost_Center Organization
Values 2 Account Code Account Code SEGMENT2 XX_Accounts Element
Note: To assign Flexfield Qualifier you will have to save the data first.
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3.6.
Save and assign Flexfield Qualifiers.
3.7.
Save and assign Flexfield Qualifiers.
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Note: The Cost Center segment will be displayed in organization costing information while the Account Code will be assigned at the time of element creation. All Rights Reserved 2006-08
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3.8.
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Enable Freeze Flexfield Definition checkbox.
Note: The next few screens are same as covered in the Grade section.
4. Position Key Flexfield Definition 4.1.
Open the Key Flexfield Segments form Sys Admin: Application > Flexfield > Key > Segments
4.2. 4.3. 4.4.
Search for Position Flexfield. Insert a new record by selecting New from the toolbar. Enter the following information, Field Code Title Description (Optional)
4.5.
Value XX_POSITION_FLEXFIELD XX POSITION FLEXFIELD XX Position Flexfield for demo.
Click Segments (button), Field Number Name
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Windows Prompt Column
4.6.
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Position Name SEGMENT1
Click Value Set (button) and enter following information, Field Value Set Name Description List Type Security Type Format Type Maximum Size Uppercase Only (A-Z) Validation Type
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Value XX_POSITIONNAME_VS XX Position Name value set for demo. List of Values No Security Char 30 Checked (Yes) Independent
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4.7. 4.8. 4.9.
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Save and close the screen. Enter the Value Set name in the Value Set field on segments Summary screen. In the 2nd lines enter following information, Field Number Name Windows Prompt Column
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Value 2 Position Region Position Region SEGMENT2
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4.10. Click Value Set (button) and enter following information, Field Value Set Name Description List Type Security Type Format Type Maximum Size Uppercase Only (A-Z) Validation Type
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Value XX_POSITIONREGION_VS XX Position Region value set for demo. List of Values No Security Char 20 Checked (Yes) Independent
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4.11. 4.12.
Save and close the screen. Enter the Value Set name in the Value Set field on segments Summary screen.
4.13. 4.14.
Save and close the screen. Enable Allow Dynamic Inserts and Freeze Flexfield Definition checkboxes.
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Note: The next few screens are same as covered in the Grade section.
5. People Group Key Flexfield Definition 5.1.
Open the Key Flexfield Segments form Sys Admin: Application > Flexfield > Key > Segments
5.2. 5.3. 5.4.
Search for People Group Flexfield. Insert a new record by selecting New from the toolbar. Enter the following information, Field Code Title Description (Optional)
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Value XX_PEOPLE_GROUP_FLEXFIELD XX PEOPLE GROUP FLEXFIELD XX People Group Flexfield for demo.
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5.5.
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Click Segments (button), Field Number Name Windows Prompt Column
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Value 1 Union Union SEGMENT1
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5.6.
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Click Value Set (button) and enter following information, Field Value Set Name Description List Type Security Type Format Type Maximum Size Uppercase Only (A-Z) Validation Type
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Value XX_UNION_VS XX Union value set for demo. List of Values No Security Char 30 Checked (Yes) Independent
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5.7. 5.8.
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Save and close the screen. Enter the Value Set name in the Value Set field on segments Summary screen.
Save and close the screen. 5.10. Enable Allow Dynamic Inserts and Freeze Flexfield Definition checkboxes
5.9.
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Note: The next few screens are same as covered in the Grade section.
6. Competence Key Flexfield Definition 6.1.
Open the Key Flexfield Segments form Sys Admin: Application > Flexfield > Key > Segments
6.2. 6.3. 6.4.
Search for Competence Flexfield. Insert a new record by selecting New from the toolbar. Enter the following information, Field Code Title Description (Optional)
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Value XX_COMPETENCE_FLEXFIELD XX COMPETENCE FLEXFIELD XX Competence Flexfield for demo.
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6.5.
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Click Segments (button), Field Number Name Windows Prompt Column
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Value 1 Skill Skill SEGMENT1
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6.6.
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Click Value Set (button) and enter following information, Field Value Set Name Description List Type Security Type Format Type Maximum Size Uppercase Only (A-Z) Validation Type
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Value XX_SKILL_VS XX Skill value set for demo. List of Values No Security Char 30 Checked (Yes) Independent
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6.7. 6.8. 6.9.
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Save and close the screen. Enter the Value Set name in the Value Set field on segments Summary screen. In the 2nd lines enter following information, Field Number Name Windows Prompt Column
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Value 2 Level Level SEGMENT2
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6.10. Click Value Set (button) and enter following information, Field Value Set Name Description List Type Security Type Format Type Maximum Size Uppercase Only (A-Z) Validation Type
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Value XX_SKILLLEVEL_VS XX Skill Level value set for demo. List of Values No Security Char 30 Checked (Yes) Dependent
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6.11.
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Save the data and click Edit Information (button) and enter the following information. Field Independent Value Set Name Description Dependent Default Value Description
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Value XX_SKILL_VS Will be auto displayed. 1 1
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6.12.
Enter the Value Set name in the Value Set field on segments Summary screen.
6.13. 6.14.
Save and close the screen. Enable Freeze Flexfield Definition checkbox.
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6.15.
I received the above error as I had not assigned the following Flexfield Qualifier.
6.16.
I have confirmed the Flexfield and it is not Freezed as below,
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Note: The next few screens are same as covered in the Grade section. Check the status of all requests and all should be completed with Normal status.
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3 - Key Flexfields Values So for we have created Key Flexfields but not yet populated the value sets of these Key Flexfields. Now we will insert values in the value sets one by one.
1. Grade Key Flexfield Values 1.1.
Open the Key Flexfield Values form Sys Admin: Application > Flexfield > Key > Values
1.2.
Select Value Set in Find Values By region and enter XX_GRADENAME_VS in the names field.
1.3. 1.4.
Click Find (button). Enter the following information, Grade EXECUTIVE MANAGEMENT SUPERVISOR
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1.5.
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Save the information and search for XX_GRADELEVEL_VS and enter the following information. Levels 1 2 3 4
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2. Job Key Flexfield Values 2.1.
Open the Key Flexfield Values form Sys Admin: Application > Flexfield > Key > Values
2.2. 2.3.
Search XX_JOB_NAME_VS value set. Enter the following information, Job MANAGER DEPUTY MANAGER SUPERVISOR CEO
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Job Code MG DM SR CO
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2.4.
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Save data and search for XX_JOB_CODE_VS to enter Job Codes.
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2.5.
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Save data and click in the header and user up/down arrow keys to move to different values of Job Name. Do this for all values and assigned job code.
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3. Position Key Flexfield Values 3.1.
Open the Key Flexfield Values form Sys Admin: Application > Flexfield > Key > Values
3.2.
Search XX_POSITIONNAME_VS.
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3.3. 3.4.
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Click Find (button). Enter the following information, Position CEO MANAGER IT MANAGER FN MANAGER HR DEPUTY MANAGER IT DEPUTY MANAGER FN DEPUTY MANAGER HR SENIOR DBA ACCOUNT OFFICER FN RECRUITMENT OFFICER
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3.5.
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Save and then search XX_POSITIONREGION_VS.
Position NORTH All Rights Reserved 2006-08
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SOUTH EAST WEST
4. People Group Key Flexfield Values 4.1.
Open the Key Flexfield Values form Sys Admin: Application > Flexfield > Key > Values
4.2.
Search XX_UNION_VS.
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4.3.
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Enter the following information, Values MUSLIM LEAGUE PEOPLE PARTY JAMAT-E-ISLAMAI NONE
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4.4.
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Save the data.
5. Competence Key Flexfield Values 5.1.
Open the Key Flexfield Values form Sys Admin: Application > Flexfield > Key > Values
5.2. 5.3.
Search for XX_SKILL_VS. Enter the following information, Skill ANALYSIS TECHNICAL FUNCTIONAL COMMUNICATION PRESENTATION
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Level (1 = low, 5 = high) 1~5 1~5 1~5 1~5 1~5
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5.4.
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Save the data and search for XX_SKILLLEVEL_VS.
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5.5.
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Save the data and then click in the Independent Value and press down arrow key.
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5.6.
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Save the data and then click in the Independent Value and press down arrow key and enter for all the Skill.
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4 - Location 1. Location Definition 1.1. 1.2. 1.3.
Assign Global Super HRMS Manager responsibility to XX USER. Switch to HRMS responsibility. To define location open the location form, HRMS: Work Structures > Location
Note: Uncheck the Global check box if you want the location to only be available within the default Business Group of your current responsibility. Accept the default if you want the location to be a global location and therefore available to all Business Groups. If you are setting up a global location, the location name must be unique across all Business Groups.
1.4. 1.5.
Enter address and Save the data. Close the form.
5 - Business Group (BG) All Rights Reserved 2006-08
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A Business Group (BG) holds information about the components of work structures such as jobs, grades and positions. At the BG level we set up the legislative rules, terms of employment, remuneration policies and employee work patterns. Oracle HRMS provides the flexibility to define enterprise the following four basic configurations models, 1 2 3 4
A single operating company in one country. A single operating company in multiple countries. Multiple operating companies in one country. Multiple operating companies in multiple countries.
We will create only one BG for demonstration while you can create more than one BG’s in your enterprise to keep sets of data separated. The major reason for creating many business groups is that your enterprise is present in many countries. The other reasons for creation of more than one BG are, o During acquisitions or mergers there is a need to manage separate structures and processes during a transition phase. o To keep a copy of your live system with example records for training or testing purposes. o You are a holding company with a number of subsidiary companies and each subsidiary has its own structures, employees, and compensation and benefit policies.
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Organization Structure XX COMPANY Business Group HR Organization CEO
XX IT Information Technology HR Organization
XX FN Finance Department HR Organization
XX HR Human Resource Department HR Organization
Positions: Manager IT Deputy Manager IT Senior DBA
Positions: Manager FN Deputy Manager FN Account Officer FN
Positions: Manager HR Deputy Manager HR Recruitment Officer
1. Business Group (BG) Definition 1.1.
Open the Description form, HRMS: Work Structures > Organization > Description
1.2.
Click New (A) (button),
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1.3.
Enter the following information in the header of screen, Field Name Type Location Internal or External
1.4. 1.5.
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Value XX COMPANY Company XX Location Internal
Before moving into Organization Classification region save the information. Select Business Group from the LOV in the Name field. Field
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Organization Classifications Name Enabled
1.6.
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Business Group ;
Save the information and then click Others (button) to enter Business Group information.
Note: The * on the start denotes the mandatory information and you will have to provide information while all others are optional. 1.7.
Select Business Group Info from the displayed LOV and click OK (button.
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1.8.
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Click in the white area of Business Group Info field and the following screen will appear.
Warning: All the information entered on this screen will affect the Business Group and you will not be able to change saved data on this screen. 1.9. Select Business Group, click the Enabled check box and click (B) Others. 1.10. Enter the required information on the screen displayed as following, Field All Rights Reserved 2006-08
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Short Name Employee Number Generation Applicant Number Generation Contingent Worker Number Generation
XX_BG Automatic Automatic Automatic
Grade Flexfield Structure Group Flexfield Structure Job Flexfield Structure Costing Flexfield Structure Position Flexfield Structure Competence Flexfield Structure Legislation Code
XX_GRADE_FLEXFIELD XX_PEOPLE_GROUP_FLEXFIELD XX_JOB_FLEXFIELD XX_COST_ALLOCATION_FLEXFIELD XX_POSITION_FLEXFIELD XX_COMPETENCE_FLEXFIELD United Kingdom
Currency Fiscal Year Start Minimum Working Age Maximum Working Age
PKR
1.11. Click OK (button).
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1.12. Click OK (button).
1.13. Click Yes (button). 1.14. Again click Others (B) and select Tax Details References required for UK legislation.
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1.15. Click OK (button).
1.16. Click in Tax Details References field.
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1.17. Enter all the required information and click OK (button). Note: PAYE Reference – this must be in the format of 999/123456 or 999/C12345 – the first 3 must be numeric and are the Tax District, the last characters are the Tax Reference. 1.18. Now assign GRE / Legal Entity where you can assign Financials Set of Books to your organization. Field Value Organization Classifications Name GRE / Legal Entity ; Enabled
1.19. Now the next step is to make our Business Group a HR Organization as we will hire CEO in this organization. Keep in mind that which organization will have employees
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must be an HR Organization. Click in the 2nd line to define HR Organization and enter the following information. Field Organization Classifications Name Enabled
1.20.
Value HR Organization ;
Save the information and close the form.
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6 - Profiles Now we have to assign our created Business Group to the responsibility we already created at the start. We will have to assign two other profiles as well. There are following three profiles which we need to set for our XX HRMS responsibility. o HR: Security Profile o HR:Business Group o HR:User Type There is a space in HR: Security Profile after colon but no space in other profile options.
1. Setting HR: Security Profile 1.1.
Open the System form, Sys Admin: Profile > System
1.2.
Enter Responsibility name XX HRMS and profile HR: Security Profile.
1.3.
Click Find (button).
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1.4. 1.5.
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Select Business Group XX COMPANY under Responsibility. Save information and click Find (button) from the toolbar.
2. Setting HR:Business Group Profile 2.1.
Change the Profile to HR:Business Group.
2.2.
Click Find (button).
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2.3. 2.4.
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Select Business Group XX COMPANY under Responsibility. Save information and click Find (button) from the toolbar.
3. Setting HR:User Type Profile 3.1.
Change the Profile to HR:User Type Group.
3.2.
Click Find (button).
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3.3.
Select HR with Payroll User from the LOV and click OK (button).
3.4.
Save the information and close the forms.
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7 - Organizations 1. Departments (HR Organization) Definition 1.1.
1.2.
Now switch to XX HRMS Responsibility and this is the place where normally people make mistakes. They do not switch to the responsibility in order to make their Business Group as container and create different organizations (Operating Units, Inventory Organizations, HR Organizations etc.) which are not later accessible in their business group. Open the Description form, HRMS: Work Structures > Organization > Description
1.3.
Click New (A) (button), and define three departments with the following information.
Field Name Type Location Internal or External Organization Classification Enabled
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XX IT Department XX LOCATION PK Internal HR Organization ;
Value XX HR Department XX LOCATION PK Internal HR Organization ;
XX FN Department XX LOCATION PK Internal HR Organization ;
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Note: Internal Organizations are Departments, Sections or Cost Centers and the External Organizations are Tax Offices, Recruitment Agencies. You can define as many organizations (Zone, Division, Department, Sections) but here for practice we have defined only 4 (Company 1, Departments 3).
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8 - Jobs Creation 1. Jobs Entry 1.1. 1.2.
Keep in the XX HRMS responsibility. Open the Description form HRMS: Work Structures > Job > Description
1.3.
We will define the following jobs. Job CEO MANAGER DEPUTY MANAGER SUPERVISOR
1.4. 1.5.
Job Code CO MG DM SR
Click New (button). A Job Group number will be automatically assigned.
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1.6.
Now click in the Name field.
1.7.
Select Job Name and Job Code.
1.8. 1.9.
Save the data. Repeat the above steps to define all jobs.
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9 - Positions Creation 1. Positions Entry We will define following positions. Position CEO.EAST MANAGER IT.EAST MANAGER FN.EAST MANAGER HR.EAST DEPUTY MANAGER IT.EAST DEPUTY MANAGER FN.EAST DEPUTY MANAGER HR.EAST SENIOR DBA.EAST ACCOUNT OFFICER FN.EAST RECRUITMENT OFFICER.EAST
Job CEO.CO MANAGER.MG MANAGER.MG MANAGER.MG DEPUTY MANAGER.DM DEPUTY MANAGER.DM DEPUTY MANAGER.DM SUPERVISOR.SR SUPERVISOR.SR SUPERVISOR.SR
Organization XX COMPANY XX IT XX FN XX HR XX IT XX FN XX HR XX IT XX FN XX HR
The following information will be same for all positions, Field Value Position Details Tab Type Single Incumbent ; Permanent Hiring Status Active Hiring Information Tab FTE 1.1.
1
Open the Description form HRMS: Work Structures > Position > Description
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1.2.
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Click New (button).
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1.3.
Click OK (button).
1.4.
Click Hiring Information tab and enter 1 in the FTE (Full Time Equivalent) as our Type is Single Incumbent.
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1.5. 1.6.
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Save the data. Repeat these steps for all positions.
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10 - Grades Creation 1. Grades Entry 1.1.
Open the Description form HRMS: Work Structures > Grade > Description
1.2.
Define the following grades, Grade EXECUTIVE MANAGEMENT SUPERVISOR
1.3.
Level 1 1,2,3 1
After Grade Name and Grade Level selection click on OK (B).
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1.4.
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Enter From date from where you want this grade to take effect or you will assign the grade. Better to keep it old date so if there are any back date transactions then you will be able to assign.
Save the data after entering all possible grades combinations.
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11 - Position Hierarchies 1. Position Hierarchy Definition
1.1.
Open the Hierarchy form HRMS: Work Structures > Position > Hierarchy
1.2.
Enter unique Hierarchy Name and click Primary check box if this is your Primary hierarchy.
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1.7.
Save the data.
1.8.
Enter Version Number and Date From and save the data.
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1.9.
Click in the Position Name and press F11 to search the top position CEO.EAST and the execute query by pressing Ctrl+F11. 1.10. Then click in the Subordinates Name field.
1.11. Enter all subordinates who are reporting to CEO in our case all Managers. Note: Employee name will be automatically displayed in the Holders Name field once these positions will be assigned to relevant employees on the People Management form. All Rights Reserved 2006-08
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1.12. Now click the MANAGER IT.EAST line and click the Blue Down arrow key to define the Manager IT subordinate.
1.13. Position MANAGER IT.EAST has jumped above in the Position Name field. Enter all subordinates who are reporting to CEO in our case all Managers. Select DEPUTY MANAGER IT.EAST as subordinates and save the information. 1.14. Now to define subordinate of DUPUTY MANAGER IT.EAST click blue Down arrow key and DUPUTY MANAGER IT.EAST position will be shifted in the Position Name field.
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1.15. Enter SENIOR DBA.EAST and save the information. 1.16. To move upward in the hierarchy click on blue up arrow and define all subordinate positions.
1.17. The hierarchy will look like shown above. All Rights Reserved 2006-08
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1.18. Save the information and close the form.
2. Position Diagrammer 2.1.
Open the Diagrammer form, HRMS: Work Structures > Position > Diagrammer
2.2.
Search for Hierarchy name XX ORG HIERARCHY.
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People Management
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12 - Employee Creation 1. Employee Creation
1.1.
Open the Enter and Maintain form, HRMS: People > Enter and Maintain
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1.2. 1.3.
Click New (button). Set Effective Date from the toolbar or using Tools menu.
1.4.
Enter the required information on the form. As we are creating an employee so we will select Create Employment in the Action field. Good thing is that when you will select Title the Gender field is automatically populated.
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1.5.
Save the data and click Address (B).
1.6.
Click on OK (B).
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1.7.
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Save and close this Address window. Note: When you enter/update the address and you get error “FRM-40735: ONINSERT trigger raised unhandled exception ORA-29273” then to resolve this error you need to take few steps as System Administrator. Sys Admin: Profile > System Search for Application Proxy port and in my case I set it to 8000. After saving this search for Applications Server-Side Proxy Host And Domain and set it accordingly. In my case it is vision.erpstuff.com. Save and close the form.
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1.8. 1.9.
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Click Assignment (button). Select Group, Position and Grade. The position will default few fields which you can change.
1.10. Click on Correction (B).
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1.11. Click on Yes (B).
1.12. Save and close Assignment Form. 1.13. Click New on the main form. 1.14. For other Employees you will have to select relevant Organization on assignment form.
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1.15. Click OK (B).
1.16. Click on Correction (B). 1.17. Create all the employees. 1.18. Now after creation of all employees I would like to show the position hierarchy.
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1.19. Now Position Holders are displayed in the hierarchy.
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Payroll Setup
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13 - Introduction to Oracle Payroll 1. QuickPay QuickPay is the process which is used to pay to single employee. It is useful when there is a need to check new elements definition result before applying on all employees. QuickPay is also used for instant updates for new hiring, late entries, and terminations.
2. Batch Processing When we have to process the payroll for more than one employee then we use batch processing. That is running a request Payroll Run.
3. Payment Methods In Oracle Payroll we can pay our employees using different payment methods like Check (Cheque), Direct Deposit, Cash or a combination of different payment methods. There are certain limitations of localizations.
4. Currency We can pay using single currency or multiple currencies. The currency is defaulted from the Business group.
5. Payroll(s) We define a payroll for a number of employees who share the same payroll calendar and therefore receive payment on the same date, and at the same regular frequency.
6. Pay Date / Cheque (check) Date The Pay Date / Check Date is the date of constructive receipt of pay, on which paychecks become negotiable.
7. Scheduled Run The Scheduled Run Date is the date scheduled for the Regular run of the payroll in each period. All Rights Reserved 2006-08
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8. Cut Off Date As employees expect salary in their bank account / cash on 1st of each month and it is also the practice of organization to pay on 1st of each month. Now it is possible if all kind of updating / addition is restricted in order to verify the data before processing of payroll, processing payroll and then post processing verifications. So for this purpose a Cut Off date is set for each period, and all entries or changes in payroll information is restricted after this date. Let say if we will set it to -5 then the cut off date will be last date of month – 5.
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14 - Consolidation Set 1. Define Consolidation Set The consolidation set is used for consolidating the result of various payrolls and post payroll processes.
1.1.
Open the form, HRMS: Payroll > Consolidation
1.2.
Enter a relevant name,
1.3.
Save the data and close the form.
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15 - Payment Methods 1. Define Payment Methods 1.1.
Open the form, HRMS: Payroll > Payment Methods
1.2. 1.3. 1.4.
Enter required and relevant information on the screen. Enter a name for the payment method, and select its type. You can create as many payment methods for each type as you require. For example, if you have different source bank accounts for different payrolls, you must create separate payment methods.
1.5.
Click in the Bank Details will open the Bank Details window so provide the bank related information.
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1.6. 1.7.
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Click OK (B). Save the data and close the form.
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16 - Elements 1. Define Elements For better understanding of the elements we will define different type of elements and will assign them to the employees and will view the results after processing.
1.1.
Element
Classification
Location Allowance
Earning
COLA (Grade Based)
Earning
Union Fund
Deduction
Entitled Car (Grade Based)
Information
Monthly Salary
Earning
Open the form, HRMS: Total Compensation > Basic > Element Description
1.2.
By default the current date will be the effective date and as this field is read only and you cannot update it directly. So after opening the form we will use the Alter Effective Date button from the tool bar. The button labeled with date 31.
1.3. 1.4.
Click on Alter Effective Date (B). Change the Effective Date to 01-JAN-2000.
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1.5. 1.6. 1.7. 1.8. 1.9. 1.10. 1.11. 1.12. 1.13. 1.14. 1.15.
1.16. 1.17. 1.18.
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Click on OK (B). Enter a unique Name & Reporting name while keeping in mind that names should not start a number or symbol. Optionally enter a description for the element. Select a Primary Classification. Select the processing type - Select Recurring if an entry of this element applies in every period until the entry is ended, or Nonrecurring if an entry applies in one pay period only. Select a termination rule to determine how entries of the element are processed after termination of the employee. Select the Multiple Entries Allowed check box if you want to give an employee more than one entry of the element at the same time. If you are creating a net-to-gross element, you must select Multiple Entries Allowed. Select the Additional Entries Allowed check box if you want to make occasional onetime entries of a recurring element (instead of, or in addition to, a normal recurring entry). Select the Closed for Entry check box if you want to prevent any new entries being made for the element. Select the Process in Run check box if you want the element to process in payroll runs. Select the Indirect Results check box if you want the element only to accept entries from indirect formula results. Leave the check box unchecked if you want to accept entries both from indirect formula results and from manual entries in the Element Entries window. Select the Adjustment Only check box if you want to use the element only for creating balance adjustments. Select the Third Party Payments check box if you want to use the element only for creating third party payments. Select the currency in the Input field if you want to make element entries in a currency other than the base currency of the Business Group.
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1.19. Save the data. Note: If the Type is Nonrecurring then this element will not appear on the Salary Basis screen. 1.20. Save the data.
2. Defining an Element's Input Values 2.1.
Click on Input Values (B).
2.2.
Uncheck the User Enterable of Pay Value.
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2.3. 2.4. 2.5.
Create a new record and enter the information. Enter the name of the first input value Location Allowance. Select the unit type of your input value (money, hours, character, date, number, or time). You can enter numbers in the Sequence field to change the order in which the input values appear in the Entry Values window.
2.6.
Check the User Enterable check box if users can enter a value for this input.
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2.7.
We can scroll to the right to enter default value and validations.
2.8.
Save the data and close this screen.
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3. Element for COLA (Cost of Living Allowance) 3.1.
Now define COLA element.
3.2.
Save and click on Input Values (B).
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3.3. 3.4.
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Provide required information and scroll to right to enter default value. Save and close the form.
4. Element for COLA (Cost of Living Allowance) 4.1.
Now define Union Fund element.
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4.2.
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Save and click on Input Values (B).
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4.3. 4.4.
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Provide required information and scroll to right to enter default value. Save and close the form.
5. Element for Company Car 5.1.
Now define Company Car element.
5.2. 5.3.
Select Information in Primary Classification. Save and click on Input Values (B).
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5.4. 5.5.
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Enter the information as shown above and save the data. Close the form.
6. Element for Monthly Salary In Pakistan the salary is negotiated on the basis of per month salary so I have created this element to deal with this. I will assign Salary Basis as monthly and will use Salary Administration to update values of this element. When we will use Salary Administration page for any employee this element will be automatically assigned to that employee and will have the salary assigned. So there is no need to manually assign this element to the employee. We will check this in more detail while assigning salaries to the employee. 6.1.
Now define Monthly Salary element.
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6.2.
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Save and click on Input Values (B).
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17 - Salary Basis 1. Define Salary Basis Salary Basis is the duration for which a salary is quoted, for example, hourly, monthly or annually. The Salary Basis window is used to define a salary basis for each salary element to be used for salary administration.
1.1.
Open the form, HRMS: Total Compensation > Basic > Salary Basis
1.2. 1.3. 1.4. 1.5.
Enter the name of the salary basis and select Basis. Select the name of the salary element and input value associated with this salary basis. Save the data. Repeat the above steps for each earning element.
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18 - Payroll 1. Define Payroll 1.1.
Open the form, HRMS: Payroll > Description
1.2.
Enter the required information on the displayed form.
1.3.
After selecting Consolidation Set then the cursor will jump to Cost field. Here we will not provide any account as we have not configured Oracle General Ledger.
1.4.
Click in Statutory Information field and enter the required information.
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1.5.
Click on OK (B).
1.6. 1.7.
Save the data. Now click on Period Dates (B) and scroll to the right.
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Note: Check the Negative Payment Allowed check box if you want the PrePayments process to include negative payments. If you leave the box unchecked, the PrePayments process ignores negative payments
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Note: Check the Cut Off date that is the final date for entering or changing payroll information before a run. 1.8. 1.9.
Close the Period Dates screen. Now click on Valid Payment Methods (B).
1.10. Close all the screens. 1.11. We can add more than one Valid Payment Methods on this form.
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19 - Element Link 1. Define Element Link The first element we will create link is the XX Monthly Salary and in search criteria we will give Salary Basis and Payroll. So all those employees having salary basis XX Monthly Salary and Payroll is XX Monthly Payroll will have this element. From here you can imagine that we can keep more than one Salary Basis say monthly and annually etc.
1.1.
Open the form, HRMS: Total Compensation > Basic > Link
1.2.
Enter the required information.
1.3.
Save the data.
Note: Check the Standard check box if you want all employees who are made eligible by the link to receive the element automatically but there are few restrictions as well.
2. Location Allowance Element Link 2.1.
Create link of Location Allowance element and here we will give criteria of location.
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2.2. 2.3.
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Here we checked Standard so this element will be automatically assigned with the default values to those employees who will have SUPERVISOR.1 grade, Location XX LOCATION PK, Salary Basis XX Monthly Salary and Payroll XX Monthly Payroll. After saving the data click on Input Values.
3. COLA Element Link 3.1.
Create link of COLA Allowance element and here we will give criteria of grade, salary basis and payroll while making it standard.
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3.2.
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Save and click on Input Value to verify the default value.
4. Company Car Element Link 4.1.
Create link of Company Car and here we will give criteria of grade and payroll while making it standard. Oh what about CEO? As CEO is not in this grade so he will not have a car. No problem we will create another link for him for his grade or position.
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4.2.
We can’t make this element link as Standard because there are mandatory (required) values without having defaults. So if we will try to keep it standard then what will be the initial value when this element will be assigned? We have not assigned default values because each employee may have different car.
4.3.
Now we will create another link to assign car to our CEO else he will not give anyone any car haaaa.
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4.4. 4.5. 4.6.
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Save the data and close the form. Now as we have created all possible links so now need to check what happened to employees assignments and also we need to update the Company car of our CEO and Managers. First let me show you a supervisor’s assignments and see what he/she has.
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4.7.
Click COLA and click on Entry Values (B).
4.8. 4.9.
The default value is assigned and if required you can change it. Now we will update the car information of an employee. So search the employee CEO.
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4.10. As the Company Car link was not a Standard so we will have to fist assign it manually to each entitled employee.
4.11. Select the XX Company Car element and click on OK (B).
4.12. Click on Entry Values (B).
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4.13. Close this window and save the information.
5. Union Fund Deduction Element Link 5.1.
Create link of Union Fund Deduction of all those employees having XX Monthly Payroll.
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5.2. 5.3.
Save and close this form. Now verify the deduction element of any employee.
5.4.
Close this form.
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Salary Administration
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20 - Salary Administration Now we will assign salary to all our defined employees. Here we will keep a the following standard,
Grade
Salary ( PKR Per Month )
CEO
100,000
Managers
80,000
Deputy Managers
70,000
Supervisors
50,000
1. Salary Basis and Payroll Assignments 1.1.
Open the Enter and Maintain form, HRMS: People > Enter and Maintain
1.2.
Search each employee and assign Salary Basis and Payroll.
1.3.
Here we have selected XX Monthly Payroll in the Payroll field and XX Monthly Salary in the Salary Basis field. While selection click on Correction (B). Save the information. We will also assign salary to each employee as well. So click Salary (B).
1.4. 1.5. 1.6.
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1.7.
Click on Add New Salary (B).
1.8.
Click on Apply (B).
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1.9.
Add Salary of each employee and as I kept the Status to Approved then I don’t need to approve as we are entering salaries first time. In case of approval you will have to perform approval from Salary Management form. 1.10. Open Salary Management form, HRMS: People > Salary Management 1.11. I have used Ctrl + F11 to view all employees and here you can check all salaries are approved. If not then select that line and click on Approve (B).
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Important: By default there will be no Approve button on this form. To enable this function (Salary Administration:Approve) we need to add it in the Menu of our responsibility.
1.12. Now let me show you how XX Monthly Salary is updated. 1.13. Search an employee and goto Assignment form.
1.14. Click the XX Monthly Salary lines and click on Entry Values (B).
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1.15. Close the forms.
2. Salary Administration Instead of entering salary from the People assignment form you can use Salary Administration page under FastPath menu. 1.1.
Open the Page, HRMS: FastPath > Salary
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1.2.
Search a specific employee or enter % in the Number field and click on Go (B).
1.3. 1.4.
The above is the list of employees we had defined earlier. Now select an employee and then click on Manager Salary (B).
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Payroll Processing
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21 - Payroll Processing Introduction 1. Payroll Processes In the Payroll processing we will cover the following areas. • • •
Run payrolls using QuickPay and batch processes Run prepayments and payments processes Run costing and transfer to GL processes
2. Processing Activities The payroll processing consists of the following activities,
Activity
Description
Data Entry
Data entry is carried out during the month till cut-off date. In our case it is EOM – 5. EOM = End of Month
Cut-off
EOM - 5
Payroll Run Run Prepayment Payment Costing
3. Retro Pay & Advance Pay In Oracle payroll if you have to pay your employees in back dates then you use Retro pay as it allows you to back pay employees, in the current payroll run. While to pay in advance the Advance pay feature is used that allows you to pay employees in advance, in the current payroll run.
4. Process Rollback A payroll run process can be rolled back and is useful when you want to check the processing and wants to verify the results. So process, verify, rollback and process again. All Rights Reserved 2006-08
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5. Retry a Payroll Run If you forgot to modify a formula so you can use retry a payroll run and it will process and it will process those employees who are affected due to this change instead of processing all.
6. Reversing a Payroll Run You have processed a payroll of terminated employee or the cheque is incorrect and you have to replace the existing cheque. Don’t forget to block the first cheque.
7. Payment Invoice There is no interface of Oracle Payroll and Accounts Payable to create an Invoice automatically. From Payroll data can be transferred to GL based on the Cost Allocation Flexfield defined and you will have to create a manual invoice in the Accounts Payable module.
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22 - QuickPay 1. QuickPay We will process the Payroll of single employee using QuickPay. Search the employee using
1.1.
Open the Enter and Maintain form, HRMS: People > Enter and Maintain Or HRMS: FastPath > QuickPay
1.2.
Search the employee.
1.3.
Click on Assignment (B).
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1.4.
Click on Others (B).
1.5.
Scroll down to select QuickPay and click on OK (B).
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1.6.
Select Run Type.
1.7.
Save and click on Element Selection (B).
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1.8. 1.9.
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Here we can also exclude elements from processing. Close this Elements screen and on main form click on Start Run (B).
1.10. The status is Complete so now to check the output click on View Results (B).
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1.11. Select Run Results and click on OK (B).
1.12. Select Standard Run click on OK (B).
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1.13. Click on Run Result Values (B).
1.14. Close this screen and open XX Union Fund a Voluntary Deduction.
1.15. Close this screen.
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1.16. If there is any mistake then you can make correction and use Retry Run option to reprocess. 1.17. Now to run the prepayment process click on Start Pre-payments (B).
1.18. Verify the Status of Pre-payment that is Complete. 1.19. Close the forms.
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23 - Batch Processiing 1. Payroll Run Process We will process the Payroll of group of employees using Payroll Run.
1.1.
Open the form, HRMS: Processes and Reports > Submit Processes and Reports
1.2.
Click on the OK (B).
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1.3. 1.4.
Select Payroll Run process and provide required parameters. Click on the OK (B).
1.5. 1.6.
Click on the Submit (B). Now view the request status.
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HRMS: Processes and Reports > View Requests
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2. PrePayment Process 2.1.
Open the form, HRMS: Processes and Reports > Submit Processes and Reports
2.2. 2.3. 2.4.
Select PrePayments process and provide required parameters. Click on the OK (B). Now view the request status. HRMS: Processes and Reports > View Requests
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3. Costing Process 3.1.
Open the form, HRMS: Processes and Reports > Submit Processes and Reports
3.2.
Select Costing process and provide required parameters.
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3.3.
Click on the OK (B).
3.4.
Now view the request status.
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HRMS: Processes and Reports > View Requests
4. Transfer to GL 4.1.
Open the form,
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HRMS: Processes and Reports > Submit Processes and Reports
4.2. 4.3. 4.4.
Select Transfer to GL process and provide required parameters. Click on the OK (B). Now view the request status. HRMS: Processes and Reports > View Requests
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Note: Although we have not configured Financial part but just wanted to show the steps.
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