This document provides instructions for setting up payroll in Oracle HRMS R12. It describes defining a consolidation set, payment methods, payroll details including period type, mapping costs to accounting, elements, element links, salary basis, tax organizations, and assigning payrolls and elements to employees. The final section covers running the actual payroll.

1. Payroll Setups of Oracle HRMS R12
Table of Contents
1. What is Payroll?........................................................................................................... 2
2. Payroll Setup ............................................................................................................... 2
A. Define Consolidation Set ......................................................................................... 2
B. Define Payment Methods ........................................................................................ 2
C. Define Payroll......................................................................................................... 4
I.Period Type................................................................................................... 5
D. Mapping Cost Allocation to the Accounting Flexfield ................................................. 5
E. Define Elements ..................................................................................................... 6
I.Element type................................................................................................. 6
II.Termination.................................................................................................. 6
III.Input Value ................................................................................................. 7
F. Define Element Link................................................................................................ 8
G. Define Salary Basis ...............................................................................................10
3. Define Professional Tax & ESI Organization, Registered Company & Legal Entity ..........11
4. Assign Payroll & Elements to Employees: ....................................................................12
5. Run the Payroll...........................................................................................................13

2. 1.What is Payroll?
A payroll defines a group of employees with a common frequency of payment and a
common pay date, it can be weekly, bi-weekly, semi-monthly, and monthly.
2.Payroll Setup
A. Define Consolidation Set
A Consolidation sets are the means by which we label payroll runs for further
processing, this enables us to process the results from more than one payroll
in a single action. It is also used to label assignment sets when we use these
for payroll processing. The same choices apply to assignment sets as to
payrolls.
By default there is one consolidation set its name same BG name, we can use it
or make another one.
Navigation -> HRMS Super User -> Payroll -> Consolidation
B. Define Payment Methods
Payment Method is the way that your enterprise will pay to employees there
compensation and benefits.
The most common payment method types are:
 Direct Deposit
 Check/Cheque
 Cash
Press Ctrl + F11 and verify the Co. name

3. Navigation -> HRMS Super User -> Payroll -> Payment Methods
 Set the effective date to a date early enough to handle any historical
information.
 Enter a name for the payment method.
 Choose the type and currency.
 Enter the Bank Details field to open the Bank Details window, this is Bank
Details Key FlexField it related to Legislation of BG.
 Select Set of Books to indicate the set of books to use if you intend to reconcile
payments using Oracle Cash Management.
Enter bank name
Enter Bank details

4.  Select GL Cash Account to indicate the cash account to use for the
reconciliation of payments.
 Save your work.
C. Define Payroll
Navigation -> HRMS Super User -> Payroll -> Discription
Enter the payroll name

5.  Set the effective date to a date early enough to handle any historical
information.
 Enter the payroll's name and select its period type from the list.
 Enter the end date of the payroll's first period, and the number of years for
which the system should initially generate the payroll's calendar. We can
increase this number later to generate additional years.
 In the Date Offset region, we can change the zero default to a negative or
positive number of days before or after the period end date. These offsets are
the defaults for the calendar. We can manually make date changes in the
calendar, for example when an offset date falls on a weekend or holiday, fields
in Date Offset region is related to Legislation of BG.
 Select a default payment method for employees who have no valid personal
payment method.
 Select a default consolidation set for this payroll.
 In the Costing region, you can enter information about the set of books and
suspense account holding costing information for this payroll.
 Save your work.
 Click on Valid Payment Methods, it will displayed the default payment method.
 Save your work.
I. Period Type
Period type explain the period of payroll and it’s frequency, this table
explain pay frequency for every period type in the year:
Payroll Period Types Periods per Year
Semi-Year 2
Quarter 4
Bi-Month 6
Calendar Month 12
Lunar Month 13
Semi-Month 24
Bi-Week 26
Week 52
D. Mapping Cost Allocation to the Accounting Flexfield
If our installation includes Oracle Payroll and Oracle General Ledger, we can run
the Transfer to GL process in each payroll period after we have run the Costing
process. The Transfer to GL process transfers costing results to the GL Accounting
flexfield.

6. Navigation -> HRMS Super User -> Payroll -> GL Flexfield Map
E. Define Elements
Elements are the components in the calculation of employee pay. Each element
represents a compensation or benefit type, such as salary, wages, overtime and
pension contributions. Elements can have user-defined names, types, and values.
You can use elements to:
 Capture any type of information
 Define eligibility based on assignment criteria
 Provide online or batch entry options
There will be some fields that would have been already mentioned and some needs
to be created.
I. Element type
Element type refer to is the element will repeat every period or just in this
period only, if it will be repeated element type will be Recurring but if it will
not be repeated element type will Nonrecurring.
II. Termination
Termination rule determine how entries of the element are processed after
termination of the employee, you have three choice:
 Actual Termination
If you want recurring entries to close down on the date the employee
leaves.
Enter the Payroll name
& other detail
These details would be provided by Finance Consultant

7.  Final Close
If you want the entries to stay open beyond the employee's leaving date
so that you can continue to pay the employee.
 Last Standard Process
The Last Standard Process date defaults to the last day of the pay period
in which the employee is terminated, but you can set it to a later period
when you terminate an employee.
III. Input Value
The element entry of the element called input value it can contain up to 15
items of information, which you define when you create the element.
Navigation-> HRMS Super User -> Total Compensation-> Basic-> Element
Description

8. F. Define Element Link
Element Link used to groups of assignments that are eligible for an element.
We can’t use the element without Element Link.
Navigation -> HRMS Super User -> Total Compensation-> Basic -> Link

9.  Set your effective date to the date you want the eligibility criteria to come into
effect.
 In the Element Name field, select the Element for which you are defining a link.
 Check the Standard check box if you want all employees who are made eligible
by the link to receive the element automatically.
 In the Eligibility Criteria region, select the assignment components that
constitute this eligibility rule.
 Select the Costable Type to allow entry of costing information at all levels,
including the assignment and element entry levels, select Costed.
 Check the Transfer to GL check box if the payroll run results from this link
should be transferred to the general ledger.
 Use the Costing field to select a GL account code and, if present, account, then
use the Balancing field to select the GL account that balances this one.

10. G. Define Salary Basis
Navigation-> HRMS Super User-> Total Compensation-> Basic-> Salary Basis

11. 3.Define Professional Tax & ESI Organization, Registered
Company & Legal Entity
Navigation-> HRMS Super User-> Work Structure-> Organization-> Description

12. 4.Assign Payroll & Elements to Employees:
Navigation-> HRMS Super User-> People -> Enter & Maintain

13. 5.Run the Payroll
Navigation: Go Menu bar and click on VIEW -> Request