Oracle Payroll Processes and relevant Payroll Tables

By | March 24, 2015

This article of Oracle HRMS Overview is very useful for HR Functional Consultants as well Technical Consultants. It will give a short description on Payroll Processes information and detailed explanation of Impact on database tables against every payroll Process. All important tables are listed in excel sheet and tables which get impact against a payroll process is explained in section below.

In this Article Following Payroll Processes are discussed:

Payroll Run
Pre Payment Process
Magnetic File/ UAE Payment Output File
cheque writer
Costing
Costing of Payment
Transfer to GL

Payroll Run

It is the first process in the Payroll processing cycle. It calculates the gross to net payment for your employees. If you have configured retro pay, then you have to run retro pay processes before payroll run process . For further details on retro pay types and retro pay process i shall post a separate article.
This process uses payroll actions to represent each payroll run. It identifies which assignments have payroll actions performed on them – that action is an assignment action of the type payroll. The results from processing each element for an assignment are the run result values.

Impact on Tables:

Payroll Process in Oracle HRMS

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PrePayment

Next step after Payroll Run is Pre-Payments process. It attaches the payment method with employee’s pay calculated by Payroll run process and it prepares payments for each assignment and inserts the results into PAY_PRE_PAYMENTS for each payment method for an assignment.

For every employee payment method is define through assignment screen clicking on Other button and selecting the Payment Method Option. It also allocates payments to third parties.

Additional tasks done by Pre-Payments process are following:

  • Calculating total amount to pay through each payment method for an assignment, and converting any currency if the payment method is in a foreign currency.
  • Handles the preparation of third party payments. For example, garnishments, court orders and child maintenance. Third party payments are managed through the definition of special payment methods for the employee.
  • Impact on Tables:

    Oracle HRMS Pre Payment Process

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    Magnetic Transfer File

    This process generates EFT (Electric File Transfer). There are standard formulas provided by Oracle that you can use create magnetic file.

    Impact on Tables:

    Magnetic Transfer Process

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    Cheque Writer Program

    You run the Cheque Writer process to produce cheque payments for unpaid pre-payment actions. You run Cheque Writer through Standard Reports Submission (SRS). Unlike the Magnetic Tape process, you can have multiple threads in Cheque Writer. Cheque Writer creates cheque assignment actions for each of the target pre-payments, subject to the restrictions of the parameters specified. The target pre-payments must be unpaid-that is, never been paid-or if they have been paid, then voided.

    Impact on Tables:

    Cheque Writer Program

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    Costing

    It is one of the Post-Run processes. It accumulates results for transfer to the GL. It sorts the run results in accordance with the information you have selected from the Cost Allocation flexfield at all levels, by the following:

  • Company
  • Ledger
  • Cost Center
  • General Ledger
  • Labour Distribution Accounts
  • The Costing process allocates payroll run results to cost segments. The Transfer to the General Ledger process transfers cost information to Oracle General Ledger interface tables. Main table in Costing process is PAY_COSTS.

    Impact on Tables:

    Costing Oracle HRMS Process

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    Costing of Payment

    Costing of Payment process generates costing entries to be transferred to GL but it generated costing entries employee wise. For Example as a result of this process one costing entry will be generated against one employee whereas Costing Process generates costing entries element wise. Mainly this process is used by companies which use Oracle Cash Management. When bank send advise for payments released to employees, through cash management you can reconcile it if you have already run Costing of Payments process.

    Impact on Tables:

    Costing of Payment

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    Transfer to GL

    This is the process which transfers payroll entries from Payroll Module to General Ledger Module. It just transfers the entries to GL interface table, Later on Journal Import process (mostly run by Financial Consultant) takes the entries Finance Core table like GL_JE_HEADERS, GL_JE_LINES etc.

    Impact on Tables:

    Transfer to GL

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    In my next article, I shall explain the Payroll Processes Locking concept. If have like contents in this post and you think it can be helpful to others, please share it at least once in your circle, in this way, you will join me in my cause to Learn Share and Grow. Come on, Lets Grow Together.

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