13th June 2013 Sample Setup for Case Scenarios in Oracle Payroll - Loan
The aim of this post is to provide sample case study for beginners in Oracle Payroll. This case study will take you
through the real time requirements in payroll for UAE legislation. In further posts we will be dealing with scenarios
related to costing and resolution for issues during payroll support.
Note: All setups are effective 01-Jan-1951
1. Loan Setup
Case: In your organization, an employee is eligible to apply for a loan. Now the administrator will determine the number
of installments required to recover this loan. This loan is internal and does not require payment to be made to a third
party.Let us keep it very simple. Oracle Payroll by default provides elements for Handling Loans. You may use these
or create you own, as I have done for simplicity sake.
Approach: You need a non-recurring element, something that the admin will add in the element entries to say that in
this run the loan is to disbursed to the employee. Then recurring elements for deducting the installment in subsequent
runs until the entire amount is repaid. Also the corresponding balances need to be created. Then we write the fast
formula for processing the loan and validations if any. Define the formula result. Go to the element entry screen add
the loan element and run the quick pay to check our setup.
Element and Balance Setup: Total Compensation>Basic>Element Description
Total Compensation>Basic>Balance
___________________________________________________________________________________
Element Loan Amount
Classification Earnings
Type Non-Recurring
Termination Rule Last Standing Process
Other Options Process in Run
Priority 7552
Input Values Pay Value
Element Loan Repayment
Classification Voluntary Deductions
Type Recurring
Termination Rule Last Standing Process
Once in Each
Other Options Process in Run
Period
Priority 7550
Number ofLoan
Input Values
Installments(Number) Amount(Money)
Element Loan Outstanding
Classification Earnings
Type Non-Recurring
Termination Rule Last Standing Process
Other Options Process in Run Indirect Result Priority 7561
Outstanding
Amount(Money)
Input Values
Balance Loan
Feeds Loan Repayment(Add)
Assignment Inception to Element Entry
Dimension Assignment Run Inception
Date to Date
___________________________________________________________________________________
Total Compensation>Basic>Write Formula
Fast Formula: Loan Calculation
Type: Oracle Payroll
DEFAULT FOR PAY_PROC_PERIOD_START_DATE IS '1951/01/01 00:00:00' (date)
DEFAULT FOR PAY_PROC_PERIOD_END_DATE IS '4712/12/31 00:00:00' (date)
DEFAULT FOR EMP_HIRE_DATE IS '4712/12/31 00:00:00' (date)
DEFAULT FOR AMOUNT is 0
DEFAULT FOR STOP IS 'NO'
DEFAULT FOR LOAN_OUTSTANDING IS 0
DEFAULT FOR LOAN_INSTALLMENT IS 0
INPUTS ARE LOAN_AMOUNT,NUMBER_OF_INSTALLMENTS
IF LOAN_BALANCE_ASG_ITD = 0 AND PAY_PROC_PERIOD_START_DATE = ENTRY_START_DATE THEN
(
LOAN_OUTSTANDING = LOAN_AMOUNT
MSG = 'Loan is disbursed'
RETURN LOAN_OUTSTANDING,LOAN_AMOUNT,MSG
)
IF LOAN_AMOUNT - LOAN_BALANCE_ASG_ITD >0 THEN
(
LOAN_INSTALLMENT = LOAN_AMOUNT/NUMBER_OF_INSTALLMENTS
LOAN_OUTSTANDING = LOAN_AMOUNT - LOAN_BALANCE_ASG_ITD - LOAN_INSTALLMENT
IF LOAN_OUTSTANDING > 0 THEN
(
MSG = 'Loan Recovery in progress'
RETURN LOAN_OUTSTANDING,LOAN_INSTALLMENT,MSG
)
ELSE
(
MSG = 'Loan recovery completed'
STOP ='YES'
RETURN LOAN_OUTSTANDING,MSG,STOP
)
)
Formula Result: Total Compensation>Basic>Formula Results
[http://4.bp.blogspot.com/-fAIkJUSVK28/Ubmp67svSYI/AAAAAAAASWw/bGVEorSyVPQ/s1600/formula+result.JPG]
[http://1.bp.blogspot.com/-i5NtJYRd1so/Ubmr-VSszHI/AAAAAAAASXA/U79kO7dTgoM/s1600/formula+result+2.JPG]
Now we go to the employee assignment screen and add the entry as shown.Loan Repayment entry for employee in
Feb
Note: This has already been processed, hence the check and end date.
Quick Pay Results: People>Enter and Maintain>
1.Select the employee
2. Click on Assignment
3. Click on Others
[http://4.bp.blogspot.com/-7UBuvAHe-NY/UbmyYmZaKKI/AAAAAAAASXQ/N_P1Rk6q544/s1600/element+entry.JPG]
4. Click on Quick Pay
[http://4.bp.blogspot.com/-TvFoV4Ab2ls/Ubm_y-MMFLI/AAAAAAAASYo/OVUpdG-MvcQ/s1600/quick+pay.JPG]
February:
[http://3.bp.blogspot.com/-iiPGDt_DKPI/Ubm0N7EpRKI/AAAAAAAASXg/r2kWrP0B8MQ/s1600/feb.JPG]
[http://3.bp.blogspot.com/-XnDKtDmHwsE/Ubm0S74THbI/AAAAAAAASX0/dpi2MVrHm9s/s1600/jul.JPG]
[http://3.bp.blogspot.com/-XnDKtDmHwsE/Ubm0S74THbI/AAAAAAAASX0/dpi2MVrHm9s/s1600/jul.JPG]
[http://1.bp.blogspot.com/-R7vqDuYPY0I/Ubm0S1oGoRI/AAAAAAAASX4/T9_JlP3-_ZU/s1600/jul+result.JPG]
March:
[http://3.bp.blogspot.com/-uKA6yT5pMBw/Ubm0TDG-MTI/AAAAAAAASX8/Uoc0pFiodyo/s1600/mar+result.JPG]
[http://1.bp.blogspot.com/-2egM0pE65jw/Ubm1AE99INI/AAAAAAAASYU/1384bDAZE-M/s1600/mar.JPG]
July:
[http://3.bp.blogspot.com/-XnDKtDmHwsE/Ubm0S74THbI/AAAAAAAASYA/hHVWDUu6Glc/s1600/jul.JPG]
[http://1.bp.blogspot.com/-R7vqDuYPY0I/Ubm0S1oGoRI/AAAAAAAASX4/T9_JlP3-_ZU/s1600/jul+result.JPG]
Posted 13th June 2013 by Vasudha and Sreekanth
3
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Jasmin Mezet April 8, 2014 at 7:30 AM
Hi Vasudha and Sreekanth,
Very good post. But I was not able to get the results as you did. First, I needed to change the Loan Amount earning
element from Recurring to Non-recurring since it will not appear in Formula results if (Earning element) it's Recurring. I
hope you are still "on-line" so we can discuss this problem?
Regards
Jazzmean
Reply
Replies
Vasudha and Sreekanth May 21, 2014 at 6:32 AM
Hi Jazz,
Sorry for the delayed response. You are right the loan amount earning should be non-recurring. As you can
see in the first screenshot where loan disbursed, the loan amount is an indirect result and hence cannot be
a recurring element. I have now corrected the typo.
Please do let me know if you need further information. I hope to be actively available on this blog :)
Regards,
Vasudha and Sreekanth
Reply
Venu R November 10, 2014 at 7:00 AM
This comment has been removed by the author.
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