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

Step (2) Create Element Link

Change element link criteria accordingly.

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

Step (4) Create a Payroll formula

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

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

Step (7) Salary Change

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

Step (8) Run Quick Pay

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

Element 1

Element 2

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