Proration formula in Oracle HRMS Payroll

Usage:

It is a very common requirement in Oracle payroll, that when a specific event occurs, e.g. Salary change, Salary of that particular period should be prorated.

Steps:

1) Create an element

2) Create Element Links

3) Create an Event Group

4) Create a payroll formula

5) Create a formula of type 'Payroll Run Proration'

6) Attach Event group and Proration formula to element

7) Salary Change

8) Run Quick pay or Payroll

Step (1) Create Element


Proration formula in Oracle HRMS Payroll

Step (2) Create Element Link

Change element link criteria accordingly.

Proration formula in Oracle HRMS Payroll

Step (3) Create Event Group

Update Type          Table                                        Column Name

Datetrack Update    PAY_ELEMENT_ENTRIES_F    EFFECTIVE_END_DATE
Datetrack Update    PAY_ELEMENT_ENTRIES_F    EFFECTIVE_START_DATE
Datetrack Update    PER_PAY_PROPOSALS            PROPOSED_SALARY_N

Proration formula in Oracle HRMS Payroll


Step (4) Create a Payroll formula


Proration formula in Oracle HRMS Payroll


DEFAULT FOR ASG_SALARY IS 0
DEFAULT FOR PAY_PROC_PERIOD_START_DATE IS '4712/12/31 00:00:00' (DATE)
DEFAULT FOR PAY_PROC_PERIOD_END_DATE IS '4712/12/31 00:00:00' (DATE)

RESULT =      ASG_SALARY
START_DATE =  PAY_PROC_PERIOD_START_DATE
END_DATE   =  PAY_PROC_PERIOD_END_DATE

RETURN RESULT, START_DATE , END_DATE

Step (5) Create a Proration formula

Proration formula in Oracle HRMS Payroll

INPUTS ARE BASIC_SALARY,
PRORATE_START(DATE),
PRORATE_END(DATE)

DEFAULT FOR PAY_PROC_PERIOD_START_DATE IS '01-JAN-0001' (DATE)
DEFAULT FOR PAY_PROC_PERIOD_END_DATE IS '31-JAN-4712'(DATE)


L_PERIOD_START(DATE) =   PAY_PROC_PERIOD_START_DATE
L_PERIOD_END(DATE)   =   PAY_PROC_PERIOD_END_DATE
L_TOTAL_DAYS         =   DAYS_BETWEEN(L_PERIOD_END,L_PERIOD_START) +1

L_WORKED_DAYS = DAYS_BETWEEN(PRORATE_END,PRORATE_START) +1

PAY_VALUE = (BASIC_SALARY/L_TOTAL_DAYS) * L_WORKED_DAYS

START_DATE = PRORATE_START

END_DATE = PRORATE_END

RETURN PAY_VALUE , START_DATE , END_DATE


Step (6) Attach Event group and Proration formula to element

Proration formula in Oracle HRMS Payroll

Step (7) Salary Change

Global HRMS Manager --> People --> Enter and Maintain --> Assignment --> Salary

Proration formula in Oracle HRMS Payroll

Step (8) Run Quick Pay

 Two element will be shown in Run results. Oracle splits the element execution on change date.

Element 1

Proration formula in Oracle HRMS Payroll

Element 2



So we achieved our goal. Hope you enjoyed the post.

Kindly provide your feedback.

Leave a comment for any query.




33 comments:

  1. Hi,

    It was a very good site to learn and implement oracle hrms.

    Thanks for the information.....

    Regards,
    Vamsee Sivaraju

    ReplyDelete
  2. Assalamu-Alikum,

    Well done, Very useful article I love it.

    Could you Please send me Interview Questions to my mail id qadrikhan333@gmail.com

    ReplyDelete
  3. Interview question & answers on Oracle HRMS functional.

    ReplyDelete
  4. Excellent...Waqas.
    Keep sharing your knowledge with the seekers.
    You have made it clear and very simple.

    Thanks

    Syed

    ReplyDelete
  5. This comment has been removed by the author.

    ReplyDelete
  6. Hi Waqas. It's Very useful and i have doubt, I did run payroll with proration element but BASIC SALARY Getting doubled because proration element and basic salary both are calculated.
    please clarify thanks in advance.

    ReplyDelete
    Replies
    1. Hi Pavan,
      I think you have created two different elements, one for proration and one for Basic salary. The process is executed in a way that when an event occurs as specified in event group, proration formula would be processed and it would create multiple results based on number of events occurred in that period. Kindly make sure that you have followed all the necessary steps in setting up this process. Kindly ask if you still face any problem.

      Delete
  7. This comment has been removed by the author.

    ReplyDelete
  8. Hi Wages
    can i create proration for non-recurring element

    ReplyDelete
    Replies
    1. Yes you can, but u will have to create two input values of start date and end date...

      Delete
  9. Dear Waqas I am totally new as "HRMS Functional" I run the quick pay for three elements.It is processed but the Report is giving Zero...

    ReplyDelete
  10. Can you Guide me what will be the reason

    ReplyDelete
    Replies
    1. AoA shakil,
      If your quickpay is returning some values in run results of the elements and if they are not showing any values in report, then there is some problem in report...kindly ask technical consultant to modify the report accordingly.

      Delete
  11. Hi,

    On R12.1.3 i am having issue if Proration and Once Each period is selected for element.
    Proration of Pay element override functionality of "Once Each Period" option
    are you aware of this issue and any solution?

    Thanks
    Deepali

    ReplyDelete
    Replies
    1. Proration process only triggers when an event occurs which we define in event group. So, proration may override some of the base functionalities of element definition. Because proration will generate as many entries as equal to number of events.

      Delete
  12. This comment has been removed by the author.

    ReplyDelete
  13. Walaikum Salam Waqas Bhai Thanx a lot:
    Another issue i have:::please check it
    we have two elements Loan recovery Elements,and housing advance recovery..
    for some employee during the recovery period When Assignment Information is Changed, Some Element Entries Automatically Change To Null Value....then restrat recovery from the begining.how can i handle it,,??related to this problem i have no such mechanism in oracle to know the exact (deducted and remaining amount) in the application level.by wich i can manually adjust them befor payroll run..what is your suggestion.please.??

    ReplyDelete
  14. Hi Waqas,

    Mansoor here,I need costing defining process step. can you please share any screenshot that how can i define costing in cost allocation flex field. i need to define costing for transferring payroll via transfer to GL request.
    My email id:mansoor.mustafa143@gmail.com

    Regards,

    ReplyDelete
  15. Thanks for this valuable information, I will surly implement it.

    Regard
    guelph payroll provider.

    ReplyDelete
  16. May Allah reward
    very good article, but i have a question ( i am beginner )
    the proration formula working fine, but if we continue for the next month and making a quick pay without any changes for the Basic salary ( input value), no value will come in the pay value for the proration element

    ReplyDelete
    Replies
    1. Hi,

      Only one run result will be created . Proration creates multiple results based on frequency of event specified in event group and attached to element.

      Delete
  17. Are you using the most advanced payroll platform....................
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    ReplyDelete
  18. Waqas
    I want to learn Payroll basic Formula from basic structure please if you can

    Regards
    GM

    ReplyDelete
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  20. Hi Waqas,
    Can we prorate any element based on salary change. i tried to enter pay proposal in the event group, but the trigger doesn't hit to prorate the element. though if i change the entry value it does prorate accordingly.

    ReplyDelete
  21. or in other words how to pick prorate start and end date of another element in proration formula of one element

    ReplyDelete
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  23. Hi Waqas,
    I hope you are doing well,I have a question regarding this formula that whether it will calculate the salary in days where the Employee has suspended assignment or not?

    Regards

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