Functional Design Document - Payroll V.2.2.docx

FUNCTIONAL DESIGN DOCUMENT
ORACLE PAYROLL

Table of Contents
1 OVERVIEW.....................................................................................................................................................3
2 PAYROLL MASTER DATA................................................................................................................................6
2.1 PAYMENT TYPE.................................................................................................................................................6
2.2 ORGANIZATIONAL PAYMENT METHOD ..................................................................................................................6
2.3 DEFINING PAYROLL............................................................................................................................................7
2.4 PAYROLL ELEMENTS...........................................................................................................................................7
2.5 ELEMENT LINK..................................................................................................................................................9
2.6 ELEMENT BALANCES ..........................................................................................................................................9
2.7 ELEMENT SETS................................................................................................................................................10
2.8 ASSIGNMENT SET............................................................................................................................................10
2.9 SALARY BASIS.................................................................................................................................................10
2.10 COST ALLOCATION KEY FLEX FIELD......................................................................................................................11
2.11 EMPLOYEE PERSONAL PAYMENT METHOD...........................................................................................................14
3 SALARY MANAGEMENT...............................................................................................................................15
3.1 INITIAL SALARY ASSIGNMENT.............................................................................................................................15
3.2 INCREMENT....................................................................................................................................................15
3.3 FINAL SETTLEMENT..........................................................................................................................................15
4 INTERFACE WITH T24 AND INCENTIVE MANAGEMENT SYSTEM ..................................................................16
4.1 IMPORTING EMPLOYEE ACCOUNT NUMBERS FROM T24.........................................................................................16
4.2 TRANSFERRING SALARY DATA TO T24.................................................................................................................16
4.3 DEDUCTION OF LOAN INSTALLMENT AS PER T24....................................................................................................16
4.4 IMPORTING EMPLOYEE’S INCENTIVES VALUE FROM INCENTIVE MANAGEMENT SYSTEM ..................................................17
5 PAYROLL GENERATION AND OTHER RELATED PROCESSES...........................................................................18
5.1 CHANGING SALARY DUE TO INCREMENTS OR PROMOTION .......................................................................................19
5.2 ENTERING NON-STANDARD ELEMENTS................................................................................................................21
5.3 PAYROLL PROCESSING......................................................................................................................................22
5.4 PAYMENT PROCESS .........................................................................................................................................23
5.5 COSTING .......................................................................................................................................................25
5.6 RETROPAY PROCESS ........................................................................................................................................26
5.7 FINAL SETTLEMENT..........................................................................................................................................28
6 REPORTS& ALERTS.......................................................................................................................................30
6.1 ORACLE PAYROLL STANDARD REPORTS................................................................................................................30
6.2 CUSTOMIZED REPORTS.....................................................................................................................................31
7 PAYROLL COSTING.......................................................................................................................................32
7.1 ACCOUNTING ENTRIES .....................................................................................................................................32
8 WISH LIST MAPPING....................................................................................................................................34
9 ANNEXURES ................................................................................................................................................36
ANNEXURE A: BENEFITS MATRIX.....................................................................................................................................36

ABC BANK FUNCTIONAL DESIGN
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1 OVERVIEW
Oracle Payroll will enable ABC Bank to automate its payroll processing activities including input by
users at branches via self-services, centralized processing of payroll and disbursement of salary to
employee accounts. Some of the benefits envisaged with the implementation of Oracle Payroll are as
follows:
 Maintenance of centralized master data for allowances and deductions;
 Maintenance of centralized payroll calendar and payroll periods;
 Maintenance of eligibility rules of allowances, benefits and deductions through Element Link
Functionality;
 RetroPay functionality for auto calculation of arrears in case of back dated payroll changes i.e.
backdated transfers, changes in salary, changes in element entry values etc.
 Automatic generation of payroll accounting entries as per defined structure after processing
payroll and seamless integration with Oracle General Ledger;
 Integration with T24 for validation on the bank account, Deduction of Installments against
employee loans and disbursement of salaries;
 Integration with Incentives Management system (IMS) so that the values of employee incentives
calculated by IMS is transferred to payroll without human interference;
 Systematic disbursement of Salary slips on email address of employees maintained in Oracle core
HR.
 Updation of year wise history of increments approved by the Management in the system;
 Uploading finalized increment through uploading process and automatic maintenance of salary
history joining till last working day;
 Streamlining data entry for various payroll elements like absence management, resignations and
transfers etc.
 Built-in integration with Absence Management, HR and General Ledger;
 Analysis of salary costs by multiple criteria i.e. Cost Centers, departments, locations etc. and
Generation of key payroll reports (standard and customized) from the system.
Payroll Period:
‘Pay Period’ defines the payroll calendar in the system. Pay Periods will be set up with specific from
and to dates.
At ABC, Monthly Payroll Periods will be defined into the system corresponding to the calendar month.
Payroll Currency
Payroll currency is the currency in which the Monthly Payroll will be processed. This will be defined at
the business group level. At ABC, Payroll will be processed in PKR only.
Payroll Processing
Upon creation of employee within the system, Proposed salary and all Assignment information (e.g
Job, Grade, Payroll etc.) mentioned at the time of Offer (Oracle iRecruitment) will be updated
automatically which can be modified by authorized HR Personnel i.e. HR Executive if required. All
‘Standard’ marked allowances, deductions and benefits for which the employee is eligible will be

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automatically linked to the employee based on the eligibility criteria defined for the element link
functionality.
Non-standard elements will be assigned to the respective employees manually by the authorized
personnel in HR & Payroll Department; HR Executive will mostly attach the allowances while Payroll
Officer will attach the deduction elements in most cases i.e. Income Tax, as per the Element Links
defined.
Calculation of salary elements will be based on the formulas defined into the system using fast
formulas functionality.
Recruitment Department will be responsible for the initial salary package of an employee. Thereafter
any change in salary package is responsibility of HR Department which will be carried out by HR
Executive.
Data for non-recurring elements like TADA and Bonus etc. will be received by HR Executive from the
relevant department and uploaded into the system through Batch Element Entry (BEE) functionality
for the respective employees.
Authorized Personnel in Payroll department i.e. Payroll Officer will execute payroll process for the
specified pay period. This process will calculate the net salaries after being automatically adjusted for
transfers, leave without pay, unauthorized absences and other such events which directly affects the
Monthly Payroll.
After finalization of the payroll and getting it approved by the President, Payroll Officer will execute a
Payment Process which will be interfaced with T24 for the transfer of salaries. Detailed process of
interfacing has been described below in a separate section.
Payment of salaries will be made from T24. Accounting entries will be automatically generated from
the system through Costing Process and will be transferred to Oracle General Ledger through ‘Transfer
to GL’ program. The finalized Monthly Payroll Journal Voucher shall be posted by Payroll Department.
Taxation
Oracle Payroll will allow ABC to process tax deductions for employees, and helps to comply with the
legislative requirements. Further, Oracle Payroll will enable ABC to automatically calculate tax liability
and deduct the appropriate sums from employee earnings. Oracle Payroll will calculate employee tax
liabilities and credits as per Income Tax laws.
At ABC, applicable tax rates shall be maintained through User Defined Tables and Global Values
functionalities. Tax credits will be calculated on amounts that are manually uploaded by Payroll Officer
using information type elements. Tax rules will be configured using the fast formula functionality.
Upon execution of Payroll Run, system will automatically calculate Annual Taxable Income and Tax
Liability. The calculated tax liability will be equally deducted from the remaining payroll periods in a
tax year.

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Payroll Security
Functional security will be enabled in the system to view and update only relevant data. Following is
list of Department wise tasks relevant to Payroll Process:
Task Responsibility
Employee Creation in the System HR Enrollment Department
Initial Proposed SalaryInput Recruitment Department
Element Entries upload HR &Payroll Department
Execution of Monthly Payroll Payroll Department
Transfer of Salaries to T24 Payroll Department
Accounting Entries Generation Payroll Department
Transfer to GL Payroll Department
Posting in GL Payroll Department
Data security could be applied using security profile functionality that could ensure
Department/Branch wise security.

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2 Payroll Master Data
2.1 Payment Type
Payment type is used to capture various modes of salaries payment. The Authorized
Personnel/Administrator will maintain payment type into the system. The following information will
be specified to define/maintain payment type:
 Payment Type Name
 Category
 Currency
 Country Account
 Description
 Allowed as Default
At ABC, following payment types will be defined:
1. Direct Deposit
2. Cheque
2.2 Organizational Payment Method
‘Organizational Payment Method’ is the mode of payment through which salary will be paid to the
employees using a particular ‘Payment Type’. This Payment Method is subsequently used at employee
record to enter the Salary Account Details, which employee identifies the mode of payment to the
employee.
For setting up a Payment Method, the authorized personnel in Payroll Department will specify the
following information in the system:
 Payment Method Name
 Payment Type
 Currency
 Bank Account Details as per Bank DetailsFlex field:
- Bank Name
- Branch Name
- City
- Branch Code
- Account Number
- Account Type
- Non Checking Account
At ABC following Payment Methods will be used for the purpose of salary disbursement:
1. ABC Direct Transfer: This will be used in most cases at ABC for direct transfer of salaries to
employees’ Bank Accounts.
2. Different Organizational Payment Method: will be defined as per the categorization of
employees without Bank Accounts and other exceptions.

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2.3 Defining Payroll
In Oracle HRMS, ‘Payroll’ defines the process which calculates the amount of salary elements
considering the input values of elements and formulas written for the calculation in the system. Payroll
will be processed for calculation of pay elements associated to all the employees in that Payroll.
Authorized Personnel in Payroll Department will maintain the master data for payroll as follows:
 Name of the payroll;
 Period type i.e. calendar month;
 First Payroll Period End Date
 Assumptive Number of years for which payroll will be run;
 Date offset i.e. Normal payment date, Pay advice date and Cut-off date;
 Default payment method;
 Costing;
 Consolidation set;
 Valid period dates; and
 Valid payment methods
Single Payroll will be defined at the ABC with the name of “ABC Bank Limited”.
2.4 Payroll Elements
In Oracle, an element is the basic building block for payroll. At ABC, Payroll Elements will be created
in the system for all allowances, deductions and tax benefits computations. Detail list of elements is
attached as “Annexure A” to this document. The Authorized Personnel in HR department will provide
the following particulars for each element:
Element Name: Element name represents the name of all Allowances, benefits and deductions
Start Date: Earliest start date for an element.
Reporting Name: This name will be used for reporting purposes.
Description: Description of the element (If any)
Primary Classification: This classifies the element category as “earning”, “deduction” or “information
type”.
Processing/Element Type: If an element is processed in every payroll run such an element will be
recurring. If an element is processed in a specific single payroll run such an element will be non-
recurring.
Termination Type: It is used to determine the time period for which the element will be entitled to an
employee. This will be used in scenarios like an employee is terminated or he/she is not entitled to
that specific element.

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Type Purpose
Actual
Termination
Impact on Recurring Entries: Recurring elements will be closed down on the date
the employee leaves (actual termination date).
Impact on Non-Recurring Element: The entries will close down at the end of the
pay period in which the employee leaves or on the date the assignment ends (the
final process date) whichever is earlier.
Last Standard
Process
Impact on Recurring and Non-Recurring Elements: For all recurring and
nonrecurring elements, last standard process will formulate entries to close
down on the Last Standard Process date (Last pay period date) or the date the
assignment ends (the final process date) whichever is earlier. The Last Standard
Process date will default to the last day of the pay period in which the employee
is terminated.
Final Close In this case, entries will stay open beyond the employee’s leaving date. The
element will be continued to process for payment to the employee till the final
process date.
Multiple Entries Allowed: If the Multiple Entries checkbox is enabled for any non-recurring element
then that element can be entered twice or more time for an employee in a payroll period, e.g. absence
entry etc.
Additional Entries Allowed: If the Additional Entries checkbox is enabled for any recurring element
then that element can be entered twice or more time for an employee in a payroll period in
exceptional scenarios. Additional entry so attached will be valid for only one payroll period.
Process in Run: This option is used to identify the elements which will be processed in payroll run.
Priority: This option describes the processing priorities of an element. Elements with lower priority
number will be processed first. At ABC, priority of element in ascending order will be as:
1) Information
2) Earnings
3) Deductions
Currency: Default Currency PKR shall be used.
Qualifying Conditions: For determining the qualification criteria for the element i.e. age and length
of service.
Input Values: As unit of measure for the element in terms of money, character, hours or days.

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2.5 Element Link
Element Link functionality will be used to define the eligibility criteria for the element based on the
assignment information. The Authorized Personnel in HR department can define the eligibility criteria
of each element based on the following:
 Organization;
 Group;
 Job;
 Position;
 Location;
 Payroll;
 Assignment Status;
 Assignment Category; and
 Salary basis.
Elements can be automatically assigned to an employee on meeting the Element Link criteria if they
are marked as ‘Standard’ otherwise they will be attached manually.
Multiple links can be created for an element as required, but the system allows the definition of only
mutually exclusive element links. At ABC elements will be linked to Job, People Group and location.
A Detailed List of Elements along with their link criteria is defined in “Annexure A”. However, detailed
data of Element Links is yet to be provided by HR Power Users.
2.6 Element Balances
Balances show the positive or negative accumulation of particular values over periods of time. They
will be fed either by the direct run results of elements processed in the payroll run or by input values.
Balance will be maintained at individual element level in the system. While defining the balance,
Authorized Personnel will specify the following information:
 Name of the balance;
 Balance Category for classification purposes; and
 Unit of measure for balance;
Balance Feeds:
At ABC, balance will be maintained for all elements for reporting purpose. Authorized Personnel will
specify the element to be included in the Balance. The following information will be specified in the
system:
 Name of the element;
 Input Value; and
 Add or Subtract action.

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Balance Dimensions:
Balances will exist for various time dimensions. Following dimensions will be set up into system:
 Period to date
 Quarter to date
 Year to date
 Fiscal Year to date
 Inception to date
2.7 Element Sets
Element set is a group of the elements which are to be processed together in a Payroll Run. Authorized
Personnel will define element set to run payroll for the group of elements. For each element set,
following information will be specified:
 Name of the Element Set;
 Type of element set;
- Run Set: It will be used for the elements to be processed in the normal payroll process
run
 Elements included in the set.
At ABC, Element set functionality will be used to process Off-Cycle Bonus payment.
2.8 Assignment Set
Assignment Set functionality is used to restrict the population of employees for Payroll Processing in
a particular run. Assignment set will be used for following purposes:
 For processing payroll separately for a group of employees;
 For restricting the payroll retry process for an individual/group of employees, etc.
At ABC, this functionality will be used to process Christian staff salaries on the occasion of Christmas,
where this staff is paid their salary before 15th
of December rather than normal payment on 26th
of
the month.
Payroll Officer will confirm the list of Christian employees from HR department on email and then
generate the Assignment set as per the list sent by HR department.
2.9 Salary Basis
Salary basis is the period of time for which an employee’s salary is quoted, such as hourly, monthly or
annually. It will define a group of employees assigned to the same salary basis and receiving the same
salary element. For defining the salary basis, Authorized Personnel will specify the following
information:
 Name of the Salary basis;
 Basis i.e. Monthly;
 Salary element name; and
 Element input values.

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Salary basis will be assigned to the employee through Assignment functionality. HR Executive will
specify the amount for the salary element through the Salary Administration functionality.
At ABC, single salary basis with the name “ABC Monthly Salary” will be defined into the system with
Monthly frequency.
2.10 Cost Allocation Key Flex field
Cost Allocation Flex field will be used to map relevant GL code information for all Chart of Accounts
segments. This information will be used to generate accounting entries in Oracle Payroll after Payroll
Run.
2.10.1 Flex field Segments
Segments of ‘Cost Allocation’ Flex field will be mapped with the ‘Accounting Key Flexfield’ defined in
Oracle General Ledger. Structure of Cost Allocation Key Flex field will be as follows:
Value Sets assigned to the Cost Allocation Key Flexfield will be same as that are assigned to the
Accounting Flexfield in Oracle GL.
2.10.2 Flexfield Qualifiers
There are various levels at which costs can be accumulated in Oracle Payroll for salary elements and
combinations of costs entered at these levels are processed according to hierarchies depending on
Flexfield qualifiers set up. However, all the Flexfield segments will be kept optional for entry, enabling
S. No. Segment Max Segment Length
1 Entity 7
2 Business Segment 2
3 Channel 8
4 Cost Center 4
5 Natural Account 14
6 Inter Branch 7
7 Product 5
8 Project 2
9 Future 1 4
10 Future 2 4
11 Future 3 5
12 Future 4 5

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the Authorized Personnel in Payroll department i.e. Payroll Officer, to enter costing information as
required. If a segment is displayed at a level and left ‘Null’, then the next level in the hierarchy will be
considered.
There are two types of Flexfield qualifiers as mentioned below:
a) Costing Segments Qualifiers:
There are five costing Flexfield segment qualifiers in payroll cost allocation key Flexfield, which
will be assigned to each segment defined in the system. The cost GL codes defined in the
system work as per the processing priorities i.e. cost codes defined at higher level (Dominant)
will override the cost code defined at lower level (Subordinate). The costing Flexfield segment
qualifiers are as follows, arranged in the order of processing priorities (Dominant to
Subordinate):
 Element Qualifier: Element qualifier is used to limit segments displayed on the Element Entry
screen. This qualifier can be assigned to all the segments of cost allocation key flexfield. At
ABC, no segments are enabled at the Element Entry level.
 Assignment Qualifier: Assignment qualifier is used to limit segments displayed on the
‘Employee Assignment’ screens. This qualifier can be assigned to all the segments of cost
allocation key flexfield. This will also allow splitting the costing of an employee in various
combinations of GL costing code based on the percentage proportions e.g. splitting of costing
of Area managers in more than one branches. At ABC, Entity and Cost Center segments will
be available at the Assignment level, in case they are required.
 Organization Qualifier: Element qualifier is used to limit segments displayed of the costing
Flexfield on the Define Organization screen. This qualifier can be assigned to all the segments
of cost allocation key flexfield. At ABC, Entity, Cost Centre and Inter Branch segments will be
selected at Organization level.
 Element Link Qualifier: This qualifier is used to limit segments displayed of the costing
Flexfield on the Element Link screen. This qualifier can be assigned to all the segments of cost
allocation key flexfield. At ABC, Natural Account segment will be selected at element link level.
 Payroll Qualifier: This qualifier is used to limit segments displayed in the costing Flexfield on
the Define Payroll screen. At ABC, all segments except Natural Account will be available at
payroll level.

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Following chart shows the qualification level of different segments at multiple levels:
Segment Element Entry Assignment HR ORG Element Link Payroll
Entity   
Business Segment  
Channel  
Cost Center    
Natural Account     
Inter Branch     
Product     
Project     
Future 1  
Future 2  
Future 3  
Future 4  
b) Balancing Segment Qualifiers:
Balancing segment qualifier allows entering cost codes for the contra effect of cost value as per
combinations of costing segments entered in the system. Balancing Qualifiers are used for the same
purpose as the Costing Segment Qualifiers. At ABC, Element Link will be the qualifier and all the
segments of cost allocation key flexfield will be enabled at this level.
2.10.3 Suspense Account
Oracle Payroll allows the user to define Suspense Account at Payroll level. This Account will be used if
the Cost Allocation Flexfield segments are missed at the specified level. If that is the case, then the
cost amounts will be charged to the suspense account. If a suspense account is not defined and the
costing Flexfield fails, then no accounting entry will be generated.

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2.11 Employee Personal Payment Method
Payment Method for employee will be specified through ‘Personal Payment Method’ functionality.
Payroll Officer will select Payment Method; specify the following information in the Employee’s
payment Method window:
 At Bank detail window following will be selected:
- Bank Name
- Branch Name
- City
- Branch Code
- Account Number
- Account Type
- Non Checking Account
Upon entry of Employee’s Bank Details system will only show records related to Bank Account that
are opened against the CNIC of the respective employee inT24. For this purpose, an interface will be
developed with Core Banking system i.e. T24 that will maintain all valid salary bank accounts details
maintained in T24 against each employee.

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3 Salary Management
3.1 Initial Salary Assignment
Employees will be hired based on the offer generated in Oracle iRecruitment Module. Upon converting
an applicant to employee, the salary proposal on accepted offer will automatically be attached to the
employee. Hence initially the Recruitment Department will be responsible for allocation of salary.
However, authorized user in HR will approve the salary proposal in the system.
After that HR Executive will be responsible for any subsequent changes in salary.
3.2 Increment
Amount of increment will be calculated out of the system based on the appraisal rating of employee
carried out through Oracle Performance Management. Human Resource Committee (HRC) will decide
the % of increment for each Performance Rating and communicate to HR department. HR Executive
will calculate the amount of increments based on the latest salary of employees in an Excel
Spreadsheet. Increment amounts will be reviewed by Payroll Officer outside the system.
The increments will be uploaded in the system using Salary Management functionality by authorized
personnel in HR department i.e. HR Executive.
Oracle Payroll will be responsible for the processing, costing and payments of Increments.
Furthermore, increment arrears and arrears of allowances in case of Back-Dated Promotions will be
automatically calculated by the system through Retro-Pay functionality.
3.3 Final Settlement
Upon resignation of an employee, HR Executive will change the Assignment status of such employee
to “Notice Period – Resigned” to stop salary for the period in which the employee puts his resignation.
Salary of the month in which the employee puts his Resignation will be processed with the Final
settlement along with last month’s salary of an employee which will be disbursed as the part of his
Final Settlement along with the other End of Service Benefits i.e. Gratuity, Leave Encashment,
Receivable against Embezzlement, Ex-Gratia Payment and Amount already paid.
Payroll Officer will initiate the Final Settlement Process after receiving clearance certificate from HR
Executive in hard form.

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4 Interface with T24 and Incentive Management System
Interfaces will be developed for integration with T24 and Incentive management system for following
purposes:
1. Validating Employee Account Numbers from T24 upon defining the employee personal
payment method.
2. Transferring Salary data to a customized interface as per the required format of T24 for salary
disbursement.
3. Display of updated loan balances on Pay slip and Automatic deduction of loan installment as
per the loan schedule maintained in a customized interface imported from T24.
4. Calculation of employee’s incentives as per the values maintained in a customized interface
imported from Incentive management system.
4.1 Importing Employee Account Numbers from T24
Employee Account Number will be imported from T24 through a customized interface. This is required
as in Oracle Payroll each employee’s bank account would have to be entered.
A customized interface from T24 will expose the employee’s bank accounts against the CNIC to Oracle
Payroll, which will be used for validation. Upon entering the Bank Account details, System will only
show the Bank Accounts against the CNIC in T24.
4.2 Transferring Salary Data to T24
After each payroll run, summarized Costing Details will be transferred to Oracle GL through standard
Oracle Process. However, for disbursement of salaries directly in employee bank accounts in ABC’s
Core Banking application, a customized interface will be developed with T24.
Following is the data to be exported from Oracle payroll to the customized interface:
1. Debit Account
2. Credit Account
3. Credit Amount
4. Branch Code of Credit Account
5. Date
6. Currency i.e. PKR
4.3 Deduction of loan Installment as per T24
Loan schedule will be maintained in T24. However loan installment will be deducted from payroll
through a customized interface.
T24 values will be exported to the customized view by ABC team, from where loan installment amount
will be imported to payroll. Following is the data to be exported from T24 to the customized Table:
1. Employee Number

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2. Date
3. CNIC
4. Loan type/name
5. Installment Amount
6. Balance Amount
Balance Amount will also be shown on Salary Slip.
4.4 Importing employee’s incentives value from Incentive management
system
Incentive against each employee is calculated by Incentive management system. However payment
of incentives will be made from payroll through a customized interface.
Incentives calculated by Incentive management system will be exported to a customized interface by
ABC team, from where incentive amount will be imported to payroll automatically using the fast
formula functionality. Following is the data to be exported from T24 to the customized Table:
1. Employee Number
2. Period/Month
3. Incentive Amount
ABC team will be responsible to develop the export routine for passing data from the source system
to Oracle and build the required internal controls to ensure accuracy and completeness.
AFF will import the data in Oracle based on the data provided in the database views from the source
systems.

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5 Payroll Generation and Other Related Processes
Following are the Payroll related process flows to be performed by the ABC’s Payroll and HR
Department:
Payroll Processes:
Following are the major categories of processes:
1. Changing Salary due Increments or promotion
2. Entering Non-Standard Elements
3. Payroll Processing
4. Payment Process
5. Costing
6. RetoPay Process
7. Final Settlement

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5.1 Changing Salary due to Increments or promotion

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Process Flow
HR Department
Module
Process
Process owner(s)
Payroll Processing
Salary Management
Documentation
Level
5.1
Process Narrative
Salary Management functionality will be used to
enter Gross salary of employees and salary
increments changes. Gross salary of an employee
will be entered initially in the system by
Recruitment Desk during recruitment process
through Oracle iRecruitmnet. In case of revision
of salary due to promotion or increment, Salary
will be entered in the system by authorized
personnel in HR department i.e. HR Executive.
5.1.1 HR Executive and Manager HRIS will prepare
a working of Increment amount based on % of
Increments fixed by HRC. There may be some Off-
cycle cases for which individual employee salary is
required to be changed.
5.1.1a In case of entry of salary for an individual
employee, HR Executive will open ‘Salary
Administration’ region and will execute ‘Add New
Salary’ function to enter an employee’s salary.
5.1.2 User will then enter the effective date from
which salary will be applied to the employee,
salary amount and next salary review date (if
any).
5.1.3 In case of entry of salary in bulk , HR
Executive will use ‘Salary Management
Spreadsheet Interface’ functionality. To enter
salary, User will export employee salary details to
the spreadsheet interface.
5.1.4 After exporting the salary details of the
employees , User will enter the new salaries of
the relevant employees against their names in the
‘Proposed Salary’ column. User will also specify
the effective date of the employee’s new salary in
the ‘Change Date’ column against his/her name.
5.1.5 After the entry of salary, User will upload
the new salary lines using ‘Oracle upload’
functionality from the menu of spreadsheet
interface. User will intimate relevant personnel in
HR department for approval, manually.
5.1.6 Manager HRIS will review the salary change
through ‘Salary Management’ functionality. He
may approve it or request for any further
information. After the approval , salary change
will be applied to the employee from the effective
date mentioned in the Salary Administration
region.
5.1.7 Initiator of the process will then cross check
the modified salary from their working sheet
outside the system to ensure that changes are as
per the initial working. After which element
entries process will be initiated.
Enter New Salaries and effective
Dates
HR
5.1.4
Upload New Modified Salaries
and send for Approval
HR
5.1.5
HR Executive will Export
employee’s Salary Detail from
Salary Management form
HR
Enter new salary and effective
date
HR
5.1.2
HR Executive will Execute ‘Add
New Salary’ function from Salary
Administration region
5.1.1a
Is Salary entry for
Single Employee
Yes No
HR Executive will then ensure
the modification are as per their
working sheet & policies
HR
5.1.7
Start
Batch Element
Entries
5.2
Legend:
Manual process Control
Automated process Validation
Decision Link
Manual Document System Generated
Document
HR
5.1.3
Manager HRIS will review the
salary changes and approve the
proposed salaries through Salary
Management functionality
HR
5.1.6
Excel
Spreadsheet
Excel
Spreadsheet
HR Executive and Manager HRIS
willprepare a working to
calculate the amount of Salary
Change based on
recommendations of HRC or
otherwise
HR
5.1.1
Working for
Increments

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5.2 Entering Non-Standard Elements
Process Flow
HR & Payroll Department
Module
Process
Process owner(s)
Payroll
Entering Non Standard Elements
Documentation
Level
5.2
Process Narrative
Element entries are input values for salary calculations. For recurring salary
elements, element entries will be made once for each eligible employee unless a
revision is required for the element entries . For non-recurring salary elements
where element entries are made specific to a particular payroll run, element
entries will be made as per the requirement for eligible employees .
In case of Allowances and benefits, Authorized user of HR department will make
element entries and in case of deductions and Tax related elements, Authorized
user in Payroll department will make element entries for all employees through
one of the following:
- Batch Element Entries functionality;
- Element entries region.
5.2.1 The working for the elements which are policy driven e.g. Operation
allowance, Conveyance Allowance, Special Adjustment Allowance etc. will be
prepared by HR Executive.
5.2.1a The working for elements which are not policy driven e.g. Bonuses,
Deposit Mobilization Incentive, Night Shift Allowance, Holiday Allowance etc.
will be prepared by Managers of relevant locations and will be sent to HR
Exective.
5.2.1a If the element entries are for an individual employee, user will enter it
through ‘Element Entries’ region. User will select the appropriate ‘Element
Name’ in the ‘Element Name’ field and will enter the effective dates of that
element .
5.2.2 After selection of element name, User will enter input values for that
element in the ‘Entry Values’ region and save the element entry.
5.2.3 If element entries are to be made in bulk, authorized user will use ‘Batch
Element Entries’ functionality. User will create a new batch through batch
element entries spread sheets interface using ‘Create Batch’ functionality.
5.2.4 After executing ‘Create Batch’ function, the user will enter the batch name,
change effective date and select ‘No’ in the ‘Purge After Transfer’ field .
5.2.5 After entering the above mentioned details, the user will upload the batch
using ‘Oracle upload’ functionality from the menu of spreadsheet interface.
5.2.6 The user will then query his batch in the ‘Batch Details’ region, select
‘Create Lines’ option in the ‘Select Batch’ field and execute ‘Process’ function
5.2.7 The user will then select the appropriate element in ‘Element’ region and
execute ‘Go’ function to create element lines .
5.2.8 The user will then enter all the assignments numbers and their respective
input values in the ‘Assignment Number’ and ‘Input Value’ fields respectively .
5.2.9 After entering the above mentioned details, he/she will upload the batch
lines using ‘Oracle upload’ functionality from the menu of spreadsheet interface.
5.2.10 User will then query his batch in the ‘Batch Details’ region, select
‘Validate Batch’ option in the ‘Select Batch’ field to validate the batch lines and
execute ‘Process’ function
5.2.11 After the validation of batch, the user will query his batch in the ‘Batch
Details’ region, select ‘Transfer Batch’ option in the ‘Select Batch’ field to
transfer batch lines to payroll and execute ‘Process’ function
Legend:
Decision Link
Document
HR Executive will Enter element
name and element effective date
HR & Payroll
5.2.1b
HR Executive will Enter Input
Value and Save Entry
HR & Payroll
5.2.2
Employee Master
Payroll
Processing
5.3
Are Element Entries for
individual employees?
Yes
HR Executive will Execute Create
Batch Function through “BEE
Spreadsheet Interface”
functionality
HR & Payroll
5.2.3a
Enter Batch Name and effective
date
HR & Payroll
5.2.4
No
Upload Batch
HR & Payroll
5.2.5
Create Batch Lines
HR & Payroll
5.2.6
Save Element Name
HR & Payroll
5.2.7
Enter Assignment Number and
InputValues
HR & Payroll
5.2.8
Transfer Batch Lines to Payroll
HR & Payroll
5.2.11
Upload Batch Lines
HR & Payroll
5.2.9
Validate Batch
HR & Payroll
5.2.10
Salary
Management
5.2
Is Element Policy
driven?
Yes No
HR Executive will prepare a
Working as per the policy
HR & Payroll
5.2.1
Relevant Managers will send
Element workings to HR
Executive.
HR & Payroll
5.2.1.a

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5.3 Payroll Processing
Process Flow
Payroll Department
Module
Process
Process owner(s)
Payroll Processing Management
Payroll Processing
Documentation
Level
5.3
Process Narrative
In IFL, Payroll process will be run after the transfer of batch element entries to payroll.
5.3.1 Payroll Officer will run payroll through a concurrent request ‘Payroll Run’ process
through ‘Submit Process and Reports’ functionality. At the time of execution, the authorized
user will specify
the following information:
- Name of the payroll;
- Consolidation set;
- Pay period; and
- Element set .
5.3.2 After successful completion of payroll process, the Manager payroll will view payroll
results processed through the ‘View Payroll Process Results’ region . Following details will be
available in that screen:
- View assignments of the employees processed in that payroll;
- View element results and balances of the assignments processed;
- Mark payroll for retry in case of any error;
- View online pay slip /Statement of earning (SOE) report of the employees;
5.3.3 Payroll results can also be viewed through Employee Assignment region if individual
employee payroll results needs to be viewed. Following details will be available in that screen
- View element results and balances of the assignments processed;
- Mark assignment processed for retry in case of error in process;
In addition to above verification tools, the authorized user will also be able to generate
customized payroll reports such as payroll detail report to verify the results of payroll
processing.
5.3.4 If there are any errors in the payroll results, Payroll Officer will correct the input values
entered at ‘Batch Element Entries’ level.
5.3.5 After correcting input values, Payroll Officer will transfer the new batch to payroll. Then
Payroll Officer will rerun payroll process in the same way as it was initially run to take effect
of the changes.
5.4 If there is no error then Payroll Officer will initiate payment process.
Legend:
Decision Link
Document
Payroll Officer willExecute
Payroll Run
Payroll
5.3.1
Manager Payroll will View
Payroll results from “view payroll
process” region
Payroll
5.3.2
Payment
Process
5.4
Is Payrollresult need
to be reviewed for
every employee?
Monthly Earning
and Deduction
Report
Are there errors in
Payroll Results?
Payroll Officer willCorrect Input
Values
Payroll
5.3.4
Manager Payroll will View
Payroll Results from employee
assignment region
Payroll
5.3.3
No Yes
Payroll Officer will Transfer
Element entries to payroll
Payroll
5.3.5
Yes
No
Batch
Element
Entries
5.3

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5.4 Payment Process

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Process Flow
Payroll
Module
Process
Process owner(s)
Payment
Documentation
Level
5.4
Process Narrative
5.4.1 : After final execution of Payroll run, Payroll
manager will review the run results and present
the summary of run results to CFO and President.
CFO and President, after reviewing payroll
summary, will finalize the payroll by signing the
approval letter to disburse the salaries.
5.4.2: After finalization of payroll, Payroll Officer
will execute the Prepayment request which will
calculate the net payment to be made against
each payment method for all employees.
Processing this request will lock the Payroll Run
Results.
5.4.3: Payroll Officer will generate “Paid By Bank”
report from Oracle Payroll, this report provides
the data required by T24 for disbursement of
salaries in required format.
5.4.4: Payroll Officer will upload the data
provided by “Paid By Bank” report in T24 in order
to disburse the salaries.
5.4.5: Salaries will be disbursed to bank accounts
of employees from T24 in two trenches ; 1st
trench to disburse salary other then
reimbursements and 2nd
trench to disburse the
reimbursements.
“Prepayment”request
Payroll
5.4.2
Legend:
Decision Link
Document
Payroll
Processing
5.3
Net Payment for
each employee
Payroll Officer willGenerate
“Paid By Bank”
Report
Payroll
5.4.3
Paid By Bank
Payroll Officer willUpload the
required data in T24 from “Paid
By Bank” Report
Payroll
5.4.4
Salary is disbursed to relevant
Bank Account of employees
from T24
Payroll
5.4.5
After Payroll Processing, CFO
and President signs an approval
letter for disbursement of
salaries
Payroll
5.4.1
Costing
5.5
Approval letter
Paid By Bank

DOCUMENT
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5.5 Costing
Process Flow
Payroll Department
Module
Process
Process owner(s)
Payroll Costing
Documentation
Level
5.5
Process Narrative
In KMBL costing process will be run by the Payroll Officer for
accounting of the payroll elements. The system will automatically
generate the accounting entries for payroll elements based on the
cost allocation key flexfield defined in the system. The entries
generated in payroll will be transferred online to Oracle General
Ledger module by executing ‘transfer to general ledger’
functionality in Oracle Payroll .
5.5.1 Payroll Officer will execute payroll costing process through a
concurrent request ‘Payroll Costing Process’ through ‘Submit
Process and Reports’ functionality . At the time of execution, he
will specify the following information:
-Name of the payroll
- Consolidation set ;
- Start and end date .
5.5.2 After executing the costing process, he will execute the
‘Costing Detail Report’ and ‘Costing Summary Report’ to view the
costing details .
5.5.3 If there will be an error, user will rollback the costing process
and rectify the error then re-process costing, after making
necessary changes.
5.5.4 User will then execute ‘Transfer to General Ledger’ process
from ‘Submit Process and
Reports’ functionality to transfer accounting entries to Oracle
General Ledger generated by the costing process. He will specify
following at the time of execution:
- Name of the payroll;
- Consolidation set ;
- Start and end date .
Legend:
Decision Link
Document
Payroll Costing Process
Payroll
5.5.1
Rollback Costing Process &
Rectify the Errors
Payroll
5.5.3
Reprocess the
Costing program
5.5.1
Isthere any error?
Execute “Transfer to GL”
program
Payroll
5.5.4
Execute “Costing DetailReport”
and “Costing Summary Report”
Payroll
5.5.2
General Ledger
Yes
No
Costing Enteries
Costing Detail
Report
Costing Summary
Report
Costing Enteries
Payment
5.4

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5.6 RetroPay Process

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27
Process Flow
Payroll Department
Module
Process
Process owner(s)
Payroll Processing
Retro Pay
Documentation
Level
5.6
Process Narrative
Retro pay process will be used to make past
adjustments in salary packages in the current
period such as increments, promotion etc. during
the year.
5.6.1 HR Executive will make Backdated changes
by making element entries, changing input values
and/or Changing salary of an employee.
5.6.2 Manager HRIS will review the backdated
changes in order to verify if any correction is
required.
5.6.3 After the correction Retro pay process will
be run. The HR Executive will perform the
following steps to run Retro pay process:
-Run the Retro Notification Report
-View Retro Pay Status and History
-Run your Retro Pay Enhanced request to create
Retro Entries
5.6.4 HR Executive will verify the backdated
changes as incorporated in the system.
5.6.5 If there are any errors, HR Executive will
rollback RetroPay process and initiate the process
again. If no errors are found then Process will
move on to Payroll Processing.
HR Executive will make
Backdated Changes e.g.
Increments, Transfers etc.
HR & Payroll
5.6.1
Legend:
Decision Link
Document
5.6
Retro Pay
Processing
Manager HRIS will Review and
verify the backdated changes
HR
5.6.2
HR Executive will run theRetro
Notification Enhanced Report
and Retro Pay Enhanced process
HR
5.6.3
Employee Master
Payroll
Processing
5.3
HR Executive will verify the
incorporation of backdated
changes
HR
5.6.4
Backdated
Changes
Incorporated
Properly?
HR Executive will run rollback
processes for RetroPay and
make required Adjustments
HR
5.6.3
No
Yes

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5.7 Final Settlement
Final Settlement Process
At the time of notice, HR Executive will change the assignment
status of employee to “Notice Period - Resigned” to stop the
salary of employee.
5.7.1 After completing the separation process as described in
Design Document of Core HR, HR Executive will send the
clearance certificate to Payroll Officer so that final settlement of
employee can be initiated.
5.7.2 Payroll Officer will attach the final settlement elements e.g.
Gratuity Payable, Leave Encashment, Ex Gratia Payment,
Receivable against embezzlement, Amount already paid
5.7.3 Payroll Officer will process the Final Settlement by running
‘Quick Pay’ in system.
5.7.4 Payroll Officer will then generate Final Settlement Report of
the employee.
5.7.5 Approval on Final Settlement report will be taken manually
and it will then be forwarded to HR department for their
approval.
5.7.1
HR Executive will provide the
clearance certificate to Payroll
Officer
HR
5.7.2
Payroll Officer willAttach
Final Settlement Elements e.g.
Gratuity, LeaveEncashment,
Ex Gratia Payment etc.
Payroll
Final Settlement
Report
Process Narrative
5.7.3
Payroll Officer willthen Run
Quick Pay
Payroll
5.7.4
Payroll Officer willGenerate
Final Settlement Report
Payroll
5.7.5
Payroll Manager Approves
final settlement report and
send it to HR for their
verification
Payroll
Separation
in Core HR
A
Employee
Master
Module
Process
Process owner(s)
Payroll Processing
Final Settlement
Documentation
Level
5.7
Legend:
Decision Link
Document
Clearance
Certificate
Approved Final
Settlement
Report

DOCUMENT
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29
Final Settlement Process
5.7.6 HR Executive will review the final settlement report and
approves it manually and sends it to payroll department so that
payment procedure can be initiated.
5.7.7 Payroll Officer will make an invoice in Oracle Payable
module and prepares a Banker’s Cheque and sends it to HR.
5.7.8 HR Executive will dispatch the cheque to the official address
of employee.
5.7.6
HR Executive Approves the
Final Settlement Report and
sends it back to Payroll
HR
Process Narrative
5.7.7
Payroll Officer willMake
payment fromOracle
Financials & prepare Banker’s
Cheque and sends it to HR
Payroll
5.7.8
HR Executive will Dispatch the
chequeto employee’s address
HR
Module
Process
Process owner(s)
Payroll Processing
Final Settlement
Documentation
Level
5.7
Legend:
Decision Link
Document
A
Banker’s Cheque
End

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6 Reports& Alerts
This section contains the reporting of ABC. ABC will have reports under following sections:
1. Oracle Payroll Standard Reports
2. Customized Reports (update reports)
3. Customized Alerts (update alerts)
Detailed list of reports and alerts has been provided in below mentioned sections.
6.1 Oracle Payroll Standard Reports
There are a number of predefined reports that ABC Payroll Department can use immediately without any further
set up. They have a predefined format but you can choose which records to view by entering a set of parameters
when you submit the report.
These reports run in batch mode: you submit them for processing in the Submit Requests window and can view
their progress using the View Requests window. The requests are handled by a concurrent manager so you can
continue working online while your request is processed.
ABC Payroll Department can schedule the reports to run regularly and can group them with other reports and
processes to run as a set.
The following list of Standard Reports will be available within the system.
S.No Report Name Information Provided
1 Absences Absence details for an employee or organization, for some or all
absence types.
2 Element Link Details The eligibility criteria for an element or a group of elements.
3 Employee Payroll
Movements
New hires, terminations, transfers in and transfer out of a selected
payroll.
4 Salary Review Current, past, and proposed salaries for a selected list of employees.
5 Element Result
Listing
This report sums all the run results processed for a particular element
over a defined period, and displays them by individual assignment.
6 Costing Detail
Report
Once the costing process is complete, Costing Detail Report can be
run to see the employee/element wise distribution of payroll
calculation results, with corresponding General Ledger Codes.
7 Costing Summary
Report
Costing Summary Report is the Summary of Costing process. It does
not include employee wise details but includes GL code wise or
Branch wise Costing summary.

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6.2 Customized Reports
Following are the list of Reports required by the ABC’s Payroll Department.
S.No Reports Name
1 Monthly Allowance Summary
2 Monthly Earning & Deduction Report
3 Annual Earnings & Deduction Report
4 Variance Reports
5 Paid by Bank Report
6 Paid by Cash/Cheque Report
7 Employees Total Allowance Register
8 Employee Annual Paysheet
9 Single Element Report
10 Employee Loan EMI deduction Report
11 Tax Computation Sheet
12 Monthly Tax Statement
13 Monthly Tax Statement - AJK branches
14 Annual Tax Statement
15 Tax Credits Report
16 Tax Exempt employee / Branches
17 Employees Tax Certificate
18 Monthly payroll Costing Report
19 Costing Response report
20 Monthly payroll Cost bifurcation Report
21 Branch wise Costing Report
22 Final settlement Costing Reports
23 Final settlement Report
24 Response report

DOCUMENT
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7 Payroll Costing
7.1 Accounting Entries
Payroll Accounting in Oracle GL:
Payroll costing program will be executed to cost payroll transactions and book relevant liability account. Following
automatic accounting entries will be generated:
Description Debit Credit
Salary Expense and Allowances (Branch & Cost center wise)–Note 1 xxx
Salary Expense and Allowances (Branch & Cost center wise) –Note 2 xxx
Salaries & Allowances Payable (Centralized Account) – Note 3 xxx
Income Tax Payable/Verification Charges Payable/EOBI Payable
(Centralized Accounts) – Note 4
xxx
Based on discussion with Payroll Department, it is agreed that all the salary costs will be transferred to Oracle
General Ledger through costing program executed by authorized personnel in payroll department, whereas the
salary disbursement entries will be transferred from T24 to Oracle General Ledger through interface between T24
and Oracle Financials.
Note 1: Salary expense will be recorded Branch and Cost Center wise by Oracle Payroll. As per the Cost Allocation
Qualification chart (Section 2.10.2), respective Accounting Codes will be dynamically picked up from different
levels (i.e. Payroll, Organization, Element Link etc.).
Note 2: Any deduction on account of excess salary and allowances paid in previous months will be recorded Branch
and Cost Center wise which will subsequently reduce current month’s balance under the account of salary and
allowances expense.
Note 3: A centralized account in H.O will be credited with Net Salary. Deduction against employee loans and its
contra effect will also be booked in this account thus leaving null effect on this account regarding loan deduction.
Impact of deduction against employee loans will be booked through an entry in T24 at the time of Payment
(explained below).A summarized Payroll JV will be posted in Oracle GL and an entry with Total Net Salary will be
booked in this Account against Salary Expense and Allowances.
Note 4: Income Tax, EOBI and Verification charges deductions will be parked in Centralized Income Tax Payable
Account, EOBI Payable Account and Verification charges payable Account respectively, which will be settled off
while payment of Income Tax, EOBI and Verification charges to respective authorities.
Payment of Net Salary in T24:
On payment of salaries from T24, following entry will be posted in general ledger through interface developed
between T24 and Oracle Financials to settle the Salary and Allowances Payable Account.

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Salaries & Allowances Payable (Centralized Account)– Note 5 Xxx
Non-Checking Account –Note 5 Xxx
Salaries & Allowances Payable (Centralized Account)– Note 6 Xxx
Employee Bank Account - Note 6 Xxx
Note 5: Amount booked in Salaries & Allowances Payable Account on account of loan installment deductions will
be debited against Non-Checking Accounts in T24.
Note 6:The balancing figure (Net of loan installment deductions) in Salaries & Allowances Payable Account i.e.
Total Net Salary, will then be settled against Employee Bank Accounts.

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8 Wish list Mapping
Sr. No. Requirement Solution
1 Recording of Salary through standard Oracle
functionality.
Salary Basis and relevant elements will be
configured in the system and salary of
employee should be recorded USING Salary
Administration functionality of Oracle HRMS.
2 Automatic attachment / detachment of relevant
element entries upon Hiring and transfer of
employee.
Standard element links with proper eligibility
criteria will be maintained in the system so
that relevant elements will be attached /
detached to employees falling under such
criteria.
3 Attachment of mass element entries using standard
oracle functionality.
Mass attachment of elements will be done
using standard Oracle functionality of Batch
Element Entry through Web ADI.
4 Bank Account details should not be maintained in
the DFF.
Bank Details Key Flexfield will be configured in
the system and Bank details will be recorded
in the standard Bank Details form.
5 Systematic proration of salary and other benefits in
case of change of salary or other like events on the
basis of number of days of the month.
Proration setup will be configured in the
system to incorporate the proration impact of
relevant elements in Payroll run.
6 Systematic calculation of Arrears from the system
with minimum human intervention.
Retro Pay functionality will be configured and
arrears elements will be defined in the system
to calculate the arrears within the system.
7 Systematic processing of Christian staff salaries on
the occasion of Christmas.
A separate payroll run will be executed with an
“assignment set” including the employees
whose salary is to be processed separately on
specific dates.
8 Systematic processing of Bonus. To process Bonus separately, a payroll run will
be executed with the element set containing
Bonus element.
9 Systematic calculation and processing of final
settlement of employees.
Quick Pay Run functionality will be used to
process the final settlement of an employee.
10 Flexibility to change entitlement rates, fractions,
percentages, minimum amounts etc.
Entitlement rates, fractions, percentages,
minimum amounts etc. will be maintained in
Global values or User defined tables and these
will be used in fast formulas.
11 Systematic calculation of values of elements for
which proper rules are defined.
Fast formulas will be configured in the system
properly so that element's values will be
calculated by the system as per the rules
provided by ABC.
12 Maintenance of Income Tax Slabs in other then Fast
formulas
User defined tables will be configured to store
the information of Income Tax Slabs.
13 Systematic calculation of tax credits and recording
of tax credits, tax adjustments and deductible
allowances in separate elements.
Separate elements will be configured in the
system for tax credits, tax adjustments and
deductible allowances. Fast formula will be
configured to calculate the amount of Tax
credits.

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14 Zero amount of Tax for employees designated in tax
free locations without hard coding the locations in
fast formula.
Fast formula of Income tax will be configured
as per the requirement and tax free locations
will be marked as tax free in DFF of such
Locations.
15 Proper Payroll messages showing break up
information of Income Tax calculations.
Fast formula of Income Tax will be configured
as per the requirement to return the break up
information of Income Tax calculation in
payroll messages/ Input values.
16 Auto Inclusion of any new taxable element in fast
formula of Income Tax.
A balance will be maintained for all the taxable
elements. This balance will be used in fast
formula of Income Tax. Inclusion of any new
taxable element in fast formula of will be done
automatically by including the element in the
above mentioned balance.
17 Deduction of Portion of Income Tax related to
bonus, Incentives and salary arrears to be made in
the relevant month and not to be prorated.
A separate element for Tax on Bonus,
Incentives and salary arrears will be defined to
calculate the income tax related to these
elements. Further the fast formula of Income
Tax will also be amended to incorporate the
effect of this requirement.
18 Bifurcation of costing for the position of Area
Managers, Distribution Supervisor and Area
Coordinator among the relevant branches.
Costing of such employees should be entered
on Assignment level where it will be bifurcated
as per the requirement.
19 Reports based on Payroll balances. Element balances functionality will be
configured for maintaining PTD, YTD, FYTD and
ITD balances for each element and reports can
be developed based on such balances.

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9 Annexures
Annexure A: Benefits Matrix
S.
No
Element Name Classification Type
Standard/
Non-
Standard
Taxable
Eligibility
(Not yet provided)
System
Calculation
Remarks/Calculation
Basis
Earnings
Salary:
1 Basic Pay Earnings Recurring Non-Standard Taxable Automated Gross Salary / 1.65
2 House Rent Allowance Earnings Recurring Standard Taxable Automated Basic Pay * 45%
3 Utility Earnings Recurring Standard Taxable Automated Basic Pay * 20%
4 Medical Allowance
(OPD)
Earnings Recurring Standard Taxable Automated Basic Pay * 10%
Allowances and
Benefits:
5 Trainers Incentive Earnings Non
Recurring
Non-Standard Taxable Manual Pre validated amounts will be
uploaded through Batch Element
Entry

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6 Operations Allowance Earnings Recurring Non-Standard Taxable Automated Fixed amount of Rs 2500/-
where Gross salary is less than
25000
7 Training Cost -
Reimbursement
(TADA)
Earnings Non
Recurring
Non-Standard Non
Taxable
Manual Pre validated amounts will be
Entry
8 Conveyance
Allowance
Earnings Recurring Non-Standard Taxable Automated Fixed amount of Rs 5000/-
9 Performance Bonus Earnings Non
Recurring
Entry
10 Vehicle Maintenance
Cost –
Reimbursement
Earnings Recurring Non-Standard Non
Taxable
Automated Amount will be determined as
per Entitled Vehicle/Car Loan
Policy. This policy will be
defined in User defined Tables
11 Special Adjustment
Allowance
Earnings Recurring Non-Standard Taxable Automated For Grade 10,11 and 12 where
Gross salary is less than 20,000 :
20,000 - Gross salary
For RM & OM position where
Gross salary is less than 40,000 :
40,000 - Gross salary

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13 Motorcycle Allowance Earnings Recurring Non-Standard Non
Taxable
Automated Fixed amount of Rs 2374/-
14 Business Travel Cost -
Reimbursement
(TADA)
Earnings Non
Recurring
Non-Standard Non
Taxable
uploaded through Batch
Element Entry
15 General Allowance -
Asset Quality Officers
16 Flat Allowance - Credit
Officers
17 Mobile Airtime Cost –
Reimbursement
Taxable
Automated Fixed amount of Rs 500/-
18 Location Premium Earnings Recurring Non-Standard Taxable Automated Policy not finalized
19 Reimbursement Cost -
Other Payments
Earnings Non
Recurring
Non-Standard Non
Taxable
Element Entry
20 Other Payments Earnings Non
Recurring
Element Entry

ORACLE PAYROLL
39
21 Fuel Cost -
Reimbursement
Taxable
Automated Number of liters * Rate per liter
Rate per liter is defined in Global
values.
Number of liters will be
determined as per Entitled
Vehicle/Car Loan Policy. This
policy will be defined in User
defined Tables
22 Deposit Mobilization
Incentive
Earnings Non
Recurring
Element Entry
23 Team Bonus Earnings Non
Recurring
Element Entry
24 Special Bonus Earnings Non
Recurring
Element Entry
25 Entitled Vehicle
Allowance
Earnings Recurring Non-Standard Taxable Automated Amount as calculated in T24 and
provided in customized
interface
26 Flat Payment Earnings Recurring Non-Standard Taxable Automated Fixed amount of Rs 6000/-
27 Club Membership
Cost –
Reimbursement
Taxable
Automated Rs 4300- Only President and
HODs are eligible

ORACLE PAYROLL
40
28 Motorcycle Fuel Cost
– Reimbursement
Taxable
Automated 65 * Rate per liter
Rate per liter will be defined in
Global Value. Employee will be
eligible price of 65 liters of
Petrol
29 Asset Sales Incentives Earnings Non
Recurring
Element Entry
30 Bancassurance Life
Sales Incentive
Earnings Non
Recurring
Element Entry
31 Bancassurance Health
Sales Incentive
Earnings Non
Recurring
Element Entry
32 Solar Product Sales
Incentive
Earnings Non
Recurring
Element Entry
33 Sehat ABC Sales
Incentive
Earnings Non
Recurring
Element Entry
34 Sehat ABC Plus Sales
Incentive
Earnings Non
Recurring
Element Entry

ORACLE PAYROLL
41
35 Product Sales
Incentive – Others
Earnings Non
Recurring
Element Entry
36 Antecedents
Verification Cost –
Reimbursement
Earnings Non
Recurring
Non-Standard Non
Taxable
Element Entry
37 Campaign Incentives Earnings Non
Recurring
Element Entry
38 Membership/Subscrip
tion Cost -
Reimbursement
Earnings Non
Recurring
Non-Standard Non
Taxable
Element Entry
39 Professional
Certification Cost –
Reimbursement
Earnings Non
Recurring
Non-Standard Non
Taxable
Element Entry
40 Night Shift Allowance Earnings Non
Recurring
Element Entry
41 Holiday Allowance Earnings Non
Recurring
Element Entry
43 Reimbursement-
General Purpose Loan
Deduction
Earnings Non
Recurring
Non-Standard Non
Taxable
Element Entry

ORACLE PAYROLL
42
44 Reimbursement-
Entitled Vehicle Loan
Deduction
Earnings Non
Recurring
Non-Standard Non
Taxable
Element Entry
45 Reimbursement-
House Rent Advance
Deduction
Earnings Non
Recurring
Non-Standard Non
Taxable
Element Entry
46 Reimbursement-
Salary Advance
Deduction
Earnings Non
Recurring
Non-Standard Non
Taxable
Element Entry
47 Reimbursement-
Vehicle Insurance
Advance Deduction
Earnings Non
Recurring
Non-Standard Non
Taxable
Element Entry
48 Reimbursement-
Vehicle Registration
Advance Deduction
Earnings Non
Recurring
Non-Standard Non
Taxable
Element Entry
49 Reimbursement-
Home Loan Deduction
Earnings Non
Recurring
Non-Standard Non
Taxable
Element Entry
50 Reimbursement-Auto
Loan Deduction
Earnings Non
Recurring
Non-Standard Non
Taxable
Element Entry
51 Reimbursement-Auto
Loan Insurance
Deduction
Earnings Non
Recurring
Non-Standard Non
Taxable
Element Entry

ORACLE PAYROLL
43
52 Reimbursement-
Entitled Vehicle WHT
Deduction
Earnings Non
Recurring
Non-Standard Non
Taxable
Element Entry
Deductions:
53 Other Tax Deduction Non
Recurring
Non-Standard Non
Taxable
Automated Portion of Income Tax related to
Bonus and incentives i.e. One
time tax
54 General Allowance -
Asset Quality Officers
Deduction
Deduction Non
Recurring
Non-Standard Non
Taxable
Automated Amount paid in previous periods
which is in excess of entitlement
of current period's designation
55 General Purpose Loan
Deduction
Deduction Recurring Non-Standard Non
Taxable
Automated Amount as calculated in T24 and
interface
56 Flat Allowance - Credit
Officers Deduction
Deduction Non
Recurring
Non-Standard Non
Taxable
57 Entitled Vehicle Loan
Deduction
Taxable
interface
58 House Rent Advance
Deduction
Taxable
interface

ORACLE PAYROLL
44
59 Salary Advance
Deduction
Taxable
interface
60 Vehicle Insurance
Advance Deduction
Taxable
interface
61 Vehicle Registration
Advance Deduction
Taxable
interface
62 Personal Telephone
Calls Deduction
Deduction Non
Recurring
Non-Standard Non
Taxable
Element Entry
63 Antecedents
Verification Deduction
Deduction Non
Recurring
Non-Standard Non
Taxable
Element Entry
64 EOBI Contribution Deduction Recurring Non-Standard Non
Taxable
Not yet Used
65 Motorcycle Allowance
Deduction
Deduction Non
Recurring
Non-Standard Non
Taxable
66 Motorcycle Fuel Cost
Deduction
Deduction Non
Recurring
Non-Standard Non
Taxable

ORACLE PAYROLL
45
67 Medical Allowance
Deduction
Deduction Non
Recurring
Non-Standard Non
Taxable
68 Gross Salary
Deduction
Deduction Non
Recurring
Non-Standard Non
Taxable
69 Unserved Notice
Period Deduction
Deduction Non
Recurring
Non-Standard Non
Taxable
Automated Gross Salary * (30-(resignation
date - last working date))
This will be deducted if Notice
Period served is less then 30
days
70 Entitled Vehicle
Allowance Deduction
Deduction Non
Recurring
Non-Standard Non
Taxable
Element Entry
71 Vehicle Maintenance
Cost Deduction
Deduction Non
Recurring
Non-Standard Non
Taxable
72 Fuel Cost Deduction Deduction Non
Recurring
Non-Standard Non
Taxable
73 Home Loan Deduction Deduction Recurring Non-Standard Non
Taxable
interface

ORACLE PAYROLL
46
74 Others Deduction Deduction Non
Recurring
Non-Standard Non
Taxable
Element Entry
75 Operations Allowance
Deduction
Deduction Non
Recurring
Non-Standard Non
Taxable
76 Special Adjustment
Allowance Deduction
Deduction Non
Recurring
Non-Standard Non
Taxable
77 Income Tax Deduction Recurring Non-Standard Non
Taxable
Automated As per Income Tax Rules
78 Leave Without Pay Deduction Non
Recurring
Non-Standard Non
Taxable
79 Business Advance
Deduction
Deduction Non
Recurring
Non-Standard Non
Taxable
Element Entry
80 Flat Payment
Deduction
Deduction Non
Recurring
Non-Standard Non
Taxable
81 Location Premium
Deduction
Deduction Non
Recurring
Non-Standard Non
Taxable

ORACLE PAYROLL
47
82 Mobile Airtime Cost
Deduction
Deduction Non
Recurring
Non-Standard Non
Taxable
83 Auto Loan Deduction Deduction Recurring Non-Standard Non
Taxable
interface
84 Auto Loan Insurance
Deduction
Taxable
interface
85 Entitled Vehicle WHT
Deduction
Taxable
interface
86 Performance Bonus
Deduction
Deduction Non
Recurring
Non-Standard Non
Taxable
Element Entry
87 Team Bonus
Deduction
Deduction Non
Recurring
Non
Taxable
Element Entry
88 Bonus Deduction Deduction Non
Recurring
Non-Standard Non
Taxable
Element Entry
89 Asset Sales Incentive
Deduction
Deduction Non
Recurring
Non-Standard Non
Taxable
Element Entry

ORACLE PAYROLL
48
90 Deposit Mobilization
Incentive Deduction
Deduction Non
Recurring
Non-Standard Non
Taxable
Element Entry
91 Trainer Incentive
Deduction
Deduction Non
Recurring
Non-Standard Non
Taxable
Element Entry
92 Training Cost
Deduction (TADA)
Deduction Non
Recurring
Non-Standard Non
Taxable
Element Entry
93 Conveyance
Allowance Deduction
Deduction Non
Recurring
Non-Standard Non
Taxable
94 Business Travel Cost
Deduction (TADA)
Deduction Non
Recurring
Non-Standard Non
Taxable
Element Entry
95 Club Membership
Cost Deduction
Deduction Non
Recurring
Non-Standard Non
Taxable
Element Entry
96 Bancassurance Life
Sales Incentive
Deduction
Deduction Non
Recurring
Non-Standard Non
Taxable
Element Entry
97 Bancassurance Health
Sales Incentive
Deduction
Deduction Non
Recurring
Non-Standard Non
Taxable
Element Entry

ORACLE PAYROLL
49
98 Solar Product Sales
Incentive Deduction
Deduction Non
Recurring
Non-Standard Non
Taxable
Element Entry
99 Sehat ABC Sales
Incentive Deduction
Deduction Non
Recurring
Non-Standard Non
Taxable
Element Entry
100 Sehat ABC Plus Sales
Incentive Deduction
Deduction Non
Recurring
Non-Standard Non
Taxable
Element Entry
101 Product Sales
Incentive Deduction
Deduction Non
Recurring
Non-Standard Non
Taxable
Element Entry
102 Campaign Incentive
Deduction
Deduction Non
Recurring
Non-Standard Non
Taxable
Element Entry
103 Membership/Subscrip
tion Cost Deductions
Deduction Non
Recurring
Non-Standard Non
Taxable
Element Entry
104 Professional
Certification Cost
Deductions
Deduction Non
Recurring
Non-Standard Non
Taxable
Element Entry
105 Night Shift Allowance
Deductions
Deduction Non
Recurring
Non-Standard Non
Taxable
Element Entry

ORACLE PAYROLL
50
106 Holiday Allowance
Deductions
Deduction Non
Recurring
Non-Standard Non
Taxable
Element Entry
107 Excess Leaves
Deductions
Deduction Non
Recurring
Non-Standard Non
Taxable
Automated Excess used leave balance at the
time of resignation * (Gross
Salary/30). If last working day is
before 15, that month will not
be counted for leave balance
purpose
Information:
108 Gross Salary Information Recurring Non-Standard Non
Taxable
Automated Salary Basis Element to attach
Gross salary of employee
109 Notional value of
home loan
Information Non
Recurring
Element Entry
110 Notional value of Car
Loan
Information Non
Recurring
Element Entry
111 Notional value of other
Loans
Information Non
Recurring
Element Entry

ORACLE PAYROLL
51
Final Settlement:
112 Leave Encashment Earnings Non
Recurring
Non-Standard Taxable Automated Leave balance * (Gross
Salary/30)
Where Leave Balance = Leaves
Accrued for the year till last
working day - Leaves availed for
the year
Note: If last working day is
before 15th of the month then
last month will not be counted
for the purpose of calculation of
leave balance.
113 Gratuity Payable Earnings Non
Recurring
Non-Standard Taxable Automated For employees joining after 25th
July 2004 :
Gross salary * ((last working
date - Joining date)/365)
For employees joining on or
before 25th July 2004:
Gross salary * ((last working
date - 25th July 2004)/365) +
Basic salary * ((25th Jul 2004 -
Joining date)/365)

ORACLE PAYROLL
52
114 Receivable against
Embezzlement
Deduction Non
Recurring
Non-Standard Non
Taxable
Element Entry
115 Amount already paid Deduction Non
Recurring
Non-Standard Non
Taxable
Element Entry
116 Ex Gratia Payment Earning Non
Recurring
Element Entry

ABC BANK
FUNCTIONAL DESIGN DOCUMENT
ORACLE PAYROLL
53

Functional Design Document - Payroll V.2.2.docx

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