Payroll Overview

Payroll is used to calculate the employee’s paychecks every pay period. This is a very important process and hence should be run accurately and efficiently. It involves a lot of complications as the size of corporations increase, and with legislations regarding taxes etc.

The purpose of this document is to guide readers through a step-by-step procedure to implement Oracle Payroll, while explaining the functional concepts involved in each step. The introduction section gives a broad picture of what Oracle Payroll entails. The rest of the document takes up each of these topics in detail.

   

Oracle Payroll implementation can be split into three phases:

a)      Pre processing  

b)      Processing and

c)      Post processing 

PRE-PROCESSING is the phase in which the organization structure is defined, the various salary elements are defined, person level data is entered, payrolls are defined, and rules regarding the calculation of elements are set up.

The various steps involved are:

1. Cost Allocation and People Group Flexfield Definition
2. Payment Methods Definition
3. Payroll/Consolidation set Definition
4. Element Definition, Link and Entry
5. Balance Definition
6. Salary Administration
7. Absence/ PTO Accrual plans
8. Time Card Data Capture (a separate module in Oracle: OTL)
9. Tax Information Capture: Vertex for US and Tax withholding rules. (Separate doc)
10. Batch Element Entry

PROCESSING is the phase when the payroll is actually run. The PYU_GEN process is run to process a payroll. Payroll can be run even for a few employees (through assignment sets), or for a few elements (element sets). Quick pay can be used for running payroll for one person.

The steps involved in this phase are:

1. Element and Assignment Sets Definition and Use
2. Quick Pay
3. PYU_GEN Process
4. Retry and Rollback Processes

POST PROCESSING involves steps that involve reporting, retroactive adjustments (where payouts for previous pay periods have to be effected now), re-tries, reversals, and roll backs. Steps relating to actual payment – cheque writing etc is also carried out here. Each of these is dealt with in detail later.

The steps involved in post-processing include:

1. Pre payments Processing
1. Payroll register/Payroll activity
2. Tax remittance
3. Gross to Net
2. Cheque Writer/BACS/External or Manual payments
3. Payments Register
4. RetroPay
5. Reversal
6. Advance Pay
7. Costing
8. Transfer to GL