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Oracle Fusion HRMS (Saudi Arabia): Payroll Implementation and Functional Considerations

An Oracle White Paper


March 2016

Oracle Fusion HCM (Saudi Arabia): Payroll


Implementation and Functional Considerations
Oracle Fusion HRMS (Saudi Arabia): Payroll Implementation and Functional Considerations

Disclaimer
The following is intended to outline our general product direction. It is intended for information purposes only,
and may not be incorporated into any contract. It is not a commitment to deliver any material, code,
or functionality, and should not be relied upon in making purchasing decisions. The development, release,
and timing of any features or functionality described for Oracles products remains at the sole discretion
of Oracle.
Oracle Fusion HRMS (Saudi Arabia): Payroll Implementation and Functional Considerations

Introduction ................................................................................................................................. 1
Whats in this Document.......................................................................................................... 1
Other Information Sources ...................................................................................................... 1
Document Updates ............................................................................................................... 2
Change Record ..................................................................................................................... 2
Comments and Suggestions ................................................................................................... 2
Payroll Data ................................................................................................................................ 3
Person and Employment Payroll Data ..................................................................................... 3
Calculation Cards .................................................................................................................... 5
Statutory Deductions and Gratuity Calculation .......................................................................... 17
GOSI Calculation .................................................................................................................. 17
Social Insurance Calculation for GCC citizens ................................................................. 18
Gratuity Calculation ............................................................................................................... 20
Monthly Gratuity Accrual ....................................................................................................... 24
Elements ............................................................................................................................... 28
Element Classifications ......................................................................................................... 28
Element Templates ............................................................................................................... 32
Elements: Allowances, Unpaid Leave and Loans .................................................................. 35
Gratuity Payment Element .................................................................................................... 48
Salary Basis and Additional Allowance Elements .................................................................. 48
Auto Indirect Elements and Creation of Element Eligibility .................................................... 50
Proration and Retroactivity .................................................................................................... 51
Element Template Change........................................................................................................ 56
Balances ................................................................................................................................... 58
Balances Definitions predefined for Saudi ............................................................................. 59
Balances and SOE ................................................................................................................ 63
Payroll Setup ............................................................................................................................ 67
Payments Setup .................................................................................................................... 67
Consolidation Groups and Payroll Definitions ........................................................................ 72
Salary Basis and Compensation ........................................................................................... 75
Currency Conversion Rates ............................................................................................... 78
Hiring an Employee and Running Payroll for Saudi: Worked Example ...................................... 80
Hire an Employee.................................................................................................................. 80
Assign Additional Information ................................................................................................ 83
Run Payroll and Review Results ........................................................................................... 89
Mandatory Post-Payroll processes ............................................................................................ 91
Calculate Prepayments ......................................................................................................... 91
Archive Periodic Payroll Results............................................................................................ 93
Payments Processing and Payslip ............................................................................................ 95
Payments Processing ........................................................................................................... 95
Oracle Fusion HRMS (Saudi Arabia): Payroll Implementation and Functional Considerations

Payslip ................................................................................................................................ 100


Monthly Reports ...................................................................................................................... 107
GOSI Form 3....................................................................................................................... 107
GOSI Form 4....................................................................................................................... 111
GOSI Form 5....................................................................................................................... 113
Saudi IPE Report ................................................................................................................ 117
Saudi IPE Consolidated Report ........................................................................................... 120
Saudi Wage Protection System Payment Output File Report .............................................. 123
Saudi Disability Report ........................................................................................................ 125
Statutory Deductions Register ............................................................................................. 128
Payroll Activity Report ......................................................................................................... 131
Gross-to-Net Report ............................................................................................................ 134
Payroll Balance Report ..................................................................................................... 138
Element Results Report .................................................................................................... 140
Payroll Register Report .................................................................................................... 143
Deductions Report .............................................................................................................. 147
Payment Register Report .................................................................................................... 151
Balance Exception Report ................................................................................................... 157
Termination ............................................................................................................................. 161
Worked Example Terminating an Employee..................................................................... 162
Conclusion .............................................................................................................................. 166
Glossary.................................................................................................................................. 166
General Terminology........................................................................................................... 166
Oracle Fusion HRMS (Saudi Arabia): Payroll Implementation and Functional Considerations

Introduction
This paper identifies and describes payroll setup tasks for Oracle Fusion Human Resources Management System
(HRMS) for Saudi Arabia (SA).

Whats in this Document


This document is intended to support the implementation team in understanding:
Saudi-specific payroll data that needs to be provided.
Saudi statutory deductions calculations and set up needed at implementation level.
Saudi predefined element templates and set up that needs to be done when creating customer specific elements.
Saudi -specific predefined balances and how these can be fed by customer specific elements.
Saudi -specific considerations for proration, retroactivity and terminations.
The base set up that needs to be done to execute a Saudi payroll and prepare payment file and payslip.
The post-payroll processes that can be executed for Saudi.
Saudi predefined setup for SOE online results viewing and impact on customer created balances.
The migration process from a legacy system, by identifying Saudi -specific fields that need to be populated by
such migration.
Note: Flexfields described in this document are Developer Descriptive Flexfields (DDF) that must not be
customized at an implementation level. Customer Descriptive Flexfields (DFF) are the fields delivered by the
product that are meant to be used for customization during implementation.
This documentation may also be beneficial to end users who run application processes after implementation.
Note: This document should not be considered a comprehensive guide for payroll implementations. The focus of
this document is Saudi -specific processes and information. For information about generic tasks, the
implementation team should refer to documentation listed in the following section.
Note: Before running payroll for Saudi, Human Resources module needs to be implemented for the country itself.
For this task refer to the HR Implementation and Functional Considerations guide for Saudi, listed in the
following section.

Other Information Sources

Oracle Fusion Workforce Deployment Implementation Guide:


http://docs.oracle.com/cd/E28271_01/fusionapps.1111/e20379/toc.htm

Oracle Fusion HRMS (Saudi Arabia): HR Implementation and Functional Considerations Guide:
https://support.oracle.com/epmos/faces/DocumentDisplay?id=1567452.1

Oracle Fusion Global Payroll User Guide:


http://www.oracle.com/technetwork/fusion-apps/payrolluserguider4-1873385.pdf

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Oracle Fusion HRMS (Saudi Arabia): Payroll Implementation and Functional Considerations

Document Updates
This document is based on the most current application release as of the documents publication date. Content is
updated as needed only to reflect major changes to existing features or when significant new features are added to
the Saudi localization. For this reason, it is possible that some minor UI differences may exist between the version
being implemented and the version described in this document.

Change Record

Date Version Change Reference


26-MAY-2015 1.0 Document updated for Release 9 Features. Included and
updated sections:
Social Insurance Calculation for GCC citizens
Retroactive Pay
Element Template Change
Currency Conversion Rates
Gross-to-Net Report
Payroll Balance Report
Element Results Report
Payroll Register Report

06-OCT-2015 1.1 Document updated for Release 10 Features. Included and


updated sections:
Monthly Gratuity Accrual
IPE Report
Saudi IPE Consolidated Report
Deductions Report
Payment Register Report
Balance Exception Report

06-MAR-2016 1.2 Document updated for Release 11 Features. Included and


updated sections:
Disability Report
Wage Protection System
User Gratuity Reference formula in Monthly Gratuity
calculation

Comments and Suggestions


Your comments are important to us. We encourage feedback about Oracle Fusion Applications Help and guides.
Please send your suggestions to: oracle_fusion_applications_help_ww_grp@oracle.com.
You may also use the Send Feedback to Oracle link in the footer of Oracle Fusion Applications Help.

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Payroll Data
Person and Employment Payroll Data
For a person to be processed in payroll a payroll relationship must be defined for the same. This section describes
specific requirements for Saudi in terms of payroll relationships including the Saudi-specific information needed
for payroll that must be captured in the employment and payroll relationship data

Payroll Relationships, Terms and Assignments

Payroll Relationship represents the relationship of the person with the Payroll Statutory Unit (PSU). This varies
from country to country, but essentially no balance aggregation is performed above this level for a person.
Each country defines the person types for which a payroll relationship is created. To be processed in payroll, a
person must have a person type of Employee.
In Saudi, the payroll relationship type Standard is used for person type Employee.
You can also create a payroll relationship for other person types such as contingent worker and pending worker.
If the pending worker type is Contingent Worker, then the payroll relationship is type Element Entries Only, if the
pending worker type is Employee, then the payroll relationship must be of type Standard Only.
For contingent workers the payroll relationship is of type Element Entries Only.
For Saudi, a single payroll relationship is created per relationship type. When there is a rehire, the employee is
treated as a new employee and so there is only one payroll relationship per person. The payroll relationship rule
Continuous Period of Service (C) has been predefined to achieve this.
Note: Payroll relationship rule Continuous Period of Service (C) implies that when the HR user creates a new
Work Term, a check is made for a Payroll Relationship of the same type and PSU. If one exists, the LSED of the
payroll relationship will be validated. If it is greater than the Term start date, the Work Term will be attached to it.
If it is less than the Term start date, a new Payroll Relationship will be generated. If one does not exist, a new
Payroll Relationship will be generated. When a Work Term is terminated, if it is the last active Work Term
associated with the Payroll Relationship, the Payroll Relationship will also be terminated.
Note: You can find the predefined data for legislation rules in the Oracle_Fusion_HRMS_Saudi_Payroll_Data.xls
on My Oracle Support (MOS).
Saudi has a requirement to handle multiple assignments within a legal employer. A person may have multiple
assignments within different terms. Possible valid combinations are:
1 Payroll Relationship 1 Term 1 Assignment
1 Payroll Relationship 1 Term n Assignments
1 Payroll Relationship n Terms n Assignments
Social insurance deduction is calculated at payroll relationship level. Earnings related to social insurance are
considered at all the three levels, that is, Relationship, Terms, and Assignments.
Saudi -specific data must be captured at a payroll relationship level and the calculation of some country specific
allowances is derived from this. To capture this information, two flexfields are enabled for the Saudi at the payroll
relationship level:
If data is migrated from a legacy system, this Saudi-specific field must be populated. The following table shows the
attributes of this flexfields for record PAY_PAY_RELATIONSHIPS_DDF
(DESCRIPTIVE_FLEX_CONTEXT_CODE = SA):

TABLE 1. PAYROLL RELATIONSHIP DATA FLEXFIELDS SAUDI

APPLICATION_COLUMN_NAME END_USER_COLUMN_NAME LOOKUP DESCRIPTION

REL_INFORMATION1 ACCOMMODATION_PROVIDED HRC_YES_NO Accommodation Provided

REL_INFORMATION2 TRANSPORTATION_PROVIDED HRC_YES_NO Transportation Provided

Contract Data

Saudi requires contract data to be captured for every payroll relationship, which also affects gratuity processing.
For this reason, it is strongly recommended that Saudi payroll customers use the 3-tier employment model. If there
is no requirement to have multiple terms and multiple assignments, the 2 tier single contract single assignment
employment model can also be used.
Saudi localization has the following 3 contract types:
Fixed Contract
Unlimited Contract
Task-specific Contract
The contract details region on the employment data page contains Saudi-specific contract data information as
follows:
Employment Status
Profession
If data is migrated from a legacy system, this Saudi-specific field must be populated. The following table shows the
attributes of this flexfields for record PER_CONTRACT_LEG_DDF
(DESCRIPTIVE_FLEX_CONTEXT_CODE = SA):

TABLE 2. CONTRACT DATA INFORMATION FLEXFIELDS SAUDI

APPLICATION_COLUMN_NAME END_USER_COLUMN_NAME LOOKUP DESCRIPTION

CTR_INFORMATION1 EMPLOYMENT_STATUS HRX_SA_EMPLOYMENT_STATUS Employment Status

CTR_INFORMATION3 PROFESSION Profession

Calculation Cards
Calculation card functionality is used to capture data needed for payroll processing that cannot be captured in
global fields. These cards are used to capture data at the organization level as well as the person level.
The Saudi localization provides two predefined cards at the payroll statutory level (PSU). These are:
Employer GOSI Details
Employer Gratuity Details
For employees, there are two predefined cards:
Employee GOSI Details card
Employee Gratuity Details
The flexfield structure used to store information entered in the calculation cards is described in
Oracle_Fusion_HRMS_Saudi_Payroll_Data.xls on My Oracle Support (MOS).

Employer GOSI Calculation Card

The employer GOSI details card uses the following information for social insurance calculation at the legal entity
level:
Reference Formula: You can define the formula that calculates the GOSI Reference salary at the legal
entity level. The GOSI Reference salary value is derived from this formula and is used as the reference
value for GOSI calculation. This formula must return the value using variable
GOSI_REFERENCE_SALARY. For additional details on the calculation, refer to the section on GOSI
calculation.
To enter or modify this information:
Sign in to the Oracle Fusion application using a role that has the profile of a superuser and privileges to create all
organizational structures:

Select Setup and Maintenance from the Navigator:

Navigate to task Define Legal Entities for Human Capital Management:


Select the legal entity for which data needs to be added and select task Manage Legal Entity Calculation Cards:

Select the Employer GOSI Details Card from the given list. If no card exists, click Create. Select the Employer
GOSI Details and click Continue. The Manage Calculation Cards page appears:

Select the predefined reference formula in the Saudi Employer GOSI Details at Payroll Statutory Unit :
Employer Gratuity Details Card

The gratuity card contains the payroll statutory unit (PSU) gratuity details and uses the following information for
gratuity calculation at the legal entity level:
Reference Formula: You can define your own reference formula to calculate the paid gratuity amount
and select it here. The formula must return the values using variable PAID_GRATUITY. This overrides
the amount calculated by the seeded gratuity formula in the Employer Gratuity Details card in the gratuity
calculation component details.
Salary Formula: You must define your own salary formula for gratuity calculation. Once you have
defined the salary formula, you can select it here. The formula must return the values using variable
MONTHLY_SALARY. Additional details on the calculation are provided in the section on gratuity
calculation.
To enter or modify this information:
1. Follow steps 1-5 used for Employer GOSI Calculation Card.
2. Select the Employer Gratuity Details:

Select a predefined reference formula in the Saudi Gratuity Information:


Employee GOSI Calculation Card

The calculation component on the employee GOSI card corresponds to the social insurance contribution payroll
deduction element, defined at the legislative level. The employee GOSI component details section captures
additional information used to calculate the deduction. When the employee GOSI calculation card is created, the
GOSI calculation component and the GOSI calculation components details record are automatically created. You
can create additional calculation component details such as SA Adjust GOSI Reference Salary and SA Setup GOSI
Reference Salary.
The GOSI card is automatically created when the new hire process for an employee is completed, provided the
employee citizenship information is specified. If the citizenship information is not specified, then the GOSI card
must be created manually for this employee.
For the automatic card creation to be enabled, your Payroll Product Usage must be set to Oracle Fusion Payroll or
Payroll Interface.
To check if a calculation card exists, or create a new calculation card:
1. Sign in to the Oracle Fusion application using a role that has the profile of a payroll manager:

Select Payroll Calculations task from the Navigator:


Navigate to Manage Calculation Cards task and select the person for whom you want to review the calculation
card:

Select the Employee GOSI Details Card from the given list. The Manage Calculation Cards page appears:
Note: If no card exists, select Create and create the calculation card manually.

Enter details or edit the Employee GOSI Details:

Note: You must associate the GOSI card to a person for the payroll process to complete successfully. You must
enter valid Citizenship, Annuities, Hazards and Registered for Social Insurance field values. All other fields are
optional.
Consider the following points when entering the data:
Citizenship: GOSI deductions are only processed for GCC citizens. You must specify the citizenship of
the employee as the GOSI calculations are processed based on this information. You must also ensure
that the employee has a Civil Identity Number specified as one of the national identifiers for Saudi
Citizens. For non-Saudi citizens this identifier is not essential.
Annuities: This field is the indicator for processing the Annuities component of Social Insurance. For
Saudi citizens, the value is always set as Yes.
Hazards: This field is the indicator for processing the Hazards component of Social Insurance. For Saudi
citizens, the value is always set as Yes.
Registered for Social Insurance: This field is the indicator for processing the social insurance
calculations for employees. For Saudi citizens, the value is always set as Yes.
Exception Type: For UAE citizens only.
Exempt from SI Contribution Difference: This field is an indicator for processing the difference in
employers subscription. The employee will normally pay the difference in the contribution unless the
field is set to Yes when the Country of Citizenship has agreed to pay the difference on behalf of the
employee.

Additional Calculation Component Details for Social Insurance


You can add additional calculation component details for SA Adjust GOSI Reference Salary and SA Setup GOSI
Reference Salary.

Setup for GOSI Reference Salary:

1. Click Create on the Component detail:

2. Select Saudi GOSI Reference Salary Setup in the Calculation Component Details field:

3. Enter the GOSI Reference Salary amount:


Setup for Saudi GOSI Reference Salary Adjustment

1. Click Create on the Component detail:

2. Select Saudi GOSI Reference Salary Adjustment in the Calculation Component Details field:
4. Enter the GOSI Reference Salary Adjustment amount:
Creating Associations
Note that the calculation card is associated automatically to the appropriate TRU and Employment Terms. Click
the Associations tab to ensure that the calculation card is associated with the appropriate TRU and Employment
Terms:

Creating the Employee Gratuity Details Card


A Gratuity calculation card captures values required for calculating and processing the Gratuity payment.

Gratuity card is created automatically upon employee termination. When the gratuity card is created, the gratuity
component, component details, and association are automatically created.
For the automatic card creation to be enabled, your Payroll Product Usage must be set to Oracle Fusion Payroll or
Payroll Interface.
1. Follow steps 1-4 used for Employee GOSI details card.
2. Select the Employee Gratuity Details card:
3. To enter the gratuity details override amount, you must manually create the calculation component details.
Click Create to create the calculation component details and enter the required information in the Override
Amount field:

Note: You can enter an override amount to be paid to the employee as gratuity. If override amount is specified, this
amount overrides the reference formula for gratuity calculation defined at the PSU level, and also the calculation
formula defined at legislative level.

Creating Associations
The calculation card is associated automatically to the appropriate TRU and Employment Terms. Click the
Associations tab to ensure that the calculation card is associated with the appropriate TRU and Employment
Terms:
However the TRU and Employment Terms can be changed using the edit option.

Statutory Deductions and Gratuity Calculation


The data entered at the TRU level and at the person level are the starting point for calculating statutory deductions
and gratuity payment, if applicable.
Based on legislative requirements Saudi localization has predefined a setup with the parameters to be used in the
calculation. These parameters are stored in the calculation information repository.

GOSI Calculation
GOSI Calculation comprises of 2 components i.e. Annuities and Hazards. Annuities is applicable to all Saudi
citizens whereas Hazards is applicable to all who work in Saudi. Annuities is contributed both by employee and
employer at 9%. Hazards are contributed only by employer at 2%.
Contributions are calculated as percentages of a GOSI Reference Salary. The GOSI Reference Salary components
are elements like basic compensation, accommodation and transport allowances. The legislation determines which
elements are liable to social insurance contributions, whereas the amounts and definitions depend on the
employers regulations.
The amount of the GOSI Reference Salary can be overridden at the person level.
If this amount is not entered at the individual level, you can define a formula used to calculate the GOSI
Reference Salary at the legal employer level.
Finally, if neither individual override, nor legal employer formula, are defined, the GOSI Reference Salary
uses the value of earnings elements that are subject to social insurance. These elements are identified by
subclassifications and feed the balance Subject to GOSI. Further detail on how Saudi has defined
element classifications and balances can be found in the related sections.
The GOSI Reference Salary has a monthly minimum value and a monthly ceiling. This means that if the
monthly social insurance income is lower than the minimum value, contributions are calculated on the
minimum value. If the monthly social insurance income exceeds the monthly ceiling, contributions are
due on earnings up to the monthly ceiling. A minimum monthly GOSI Reference Salary of 1500 SAR and
monthly ceiling of 45000 SAR are predefined.
For the private sector, the current contribution rates for employees is 9% and employers is 9%. From the
1st September 2014, an additional 1% contribution is included for both the employees and employers to
cover Unemployment Insurance (Saned).
If the employees payroll relationship is terminated before the end of the current month, no contribution is
deducted. If termination date is last day of the current month the full contribution is deducted.

Social Insurance Calculation for GCC citizens


With the change in legislation and the reciprocal agreement between the six GCC countries -- United Arab
Emirates (AE), Kuwait (KW), Saudi Arabia (SA) Bahrain (BA), Sultanate of Oman (OM) and Qatar (QA) -- social
insurance is now applicable to all the citizens of GCC countries. Social Insurance contributions are calculated and
deducted from employees who have a GCC nationality and are working in any of the GCC countries in accordance
with the Unified Law of Insurance Protection Extension.

Employee GOSI Details Card is enhanced to capture the additional information:


If an employee is registered for Social Insurance or not
Additional personal details based on localization, for example, Exception Type in UAE
Agreement for the country of citizenship to pay the difference in contributions
Note: You must consider the Currency Conversion Rate between the country of citizenship and Saudi Arabia to
enable the correct social insurance calculation for GCC citizens. Ensure conversion rates are correctly setup before
processing social insurance.

Social Insurance Deductions

The social insurance calculation is based on the GOSI element. The Social Insurance deduction is a part of the
Social Insurance component group.
Viewing component groups, deductions, and elements:
1. Sign in to the application using the payroll manager role.
2. Navigate to the Payroll Calculation work-area
3. From the Tasks pane, select the Manage Payroll Calculation Information task.
4. In the Manage Payroll Calculation Information page, search for the Social Insurance component group.
5. In the search results, click Social Insurance component group to view the details.
Calculation Information Repository

Parameters used in the calculation of social insurance are stored in the calculation information repository. These
parameters are predefined by the Saudi localization and cannot be modified in the implementation phase.
To view predefined parameters:
1. Log in with a Payroll Manager role.
2. Navigate to task Manage Payroll Calculation Information in the Payroll Calculation work area.
3. Select Social Insurance Deduction:

4. Open the Calculation Factors for the related element:


5. Click on Range Values to display the details of calculation factors:

Gratuity Calculation
Persons working in Saudi Arabia are entitled to an additional payment upon termination which is called Gratuity.
The entitlement to this payment is accrued during the work relationship.
The gratuity amount to be paid is driven by Saudi labor laws. If you are not following the Saudi labor laws, you
can define your own formula for gratuity processing. The following two options are available:
You can define your own formula and create a setup according to the values to be returned to your
formula run results. In such a scenario, you may not need to use the localization solution for gratuity
processing.
You can define your own reference formula gratuity processing, which substitutes the gratuity formula
defined at the legislative level. If a user-defined formula exists, then the seeded formula executes it.
The localization solution for gratuity processing uses the following rules:
The duration of service and the contract type (fixed or unlimited) determine the number of days of
gratuity payment to which the payee is entitled per year of service. These days are retrieved from the
calculation information repository. Note that the duration of service can be reduced by unpaid or
unauthorized absences. This is obtained by creating elements for Unpaid Leave classification and
attaching this element to the absence type. If an absence with this newly created absence type is recorded,
the Unpaid Leave elements days input value will feed the Leave Without Pay balance. In the Gratuity
formula, the Leave Without pay balance is used to get the unpaid absences.
The base salary for gratuity payment is calculated through the salary formula selected at the legal employer
level.
If the person is terminated, contract type and termination initiator is checked and amount is paid:
o If termination initiator is employer, then the complete gratuity accrued is paid to the employee.
o If termination initiator is the employee, the application fetches the payment factor using the contract
type and period of service. Payment factor is available in the calculation information repository.

Gratuity Entitlement and Payment

Fixed Contracts
Gratuity Entitlement: An employee is entitled to half month salary for the first 5 years and full month salary for
each additional year.
Gratuity Payment: If employer terminates the employee, the employee is paid the complete gratuity that has
accrued.
If employer terminates the employee or if the contract has expired, the employee is paid the complete gratuity that
has accrued if the contract was more than 2 years.
If employee has resigned before completing 2 year then no gratuity is paid.
If the employee has completed between 2 to 5 years, 1/3 gratuity is paid.
If the employee has completed between 5 to 10 years, 2/3 gratuity is paid.
If the employee has completed more than 10 years, complete gratuity is paid.
If the contract has expired and the employee has completed more than 2 year in service he will get the complete
gratuity upon his termination.
Unlimited Contracts
Gratuity Entitlement: An employee is entitled to half month salary for the first 5 years and full month salary for
each additional year.
Gratuity Payment:
If employer terminates the employee, the employee is paid the complete gratuity that has accrued.
If employee has resigned before completing 2 year then no gratuity is paid.
If the employee has completed between 2 to 5 years, 1/3 gratuity is paid.
If the employee has completed between 5 to 10 years, 2/3 gratuity is paid.
If the employee has completed more than 10 years, complete gratuity is paid.
Exception
A female worker is entitled to full gratuity amount if she resigns within 6 months of her marriage or three months
after giving birth to a child. No minimum length of service is required in such cases.

Component Groups and Deductions

Gratuity payment is calculated through supplemental earnings Gratuity Payment that is part of component group
Gratuity. Calculations are made through the predefined element Gratuity Payment.
To view details on component groups, deductions and elements:
1. Sign in to the Oracle Fusion application using a role that has the profile of a payroll manager:
2. Navigate to task Manage Payroll Calculation Information in the Payroll Calculation work-area.
3. Select GRATUITY Deduction and view the details.

Calculation Information Repository


To view predefined parameters:
1. Log in with a Payroll Manager role.
2. Navigate to task Manage Payroll Calculation Information in the Payroll Calculation work-area.
3. Select GRATUITY Deduction.

4. Open the Calculation Factors for the related element.

The calculation factors are used for calculating gratuity payments (gratuity bands represent the eligibility months).
5. Click on Range Values to display the details of calculation factors.
Monthly Gratuity Accrual
The application calculates the accrual of gratuity on a monthly basis. The amount calculated is the amount that an
employee would be entitled to, if they were terminated at the end of that month and if they were eligible for
payment. The monthly gratuity accrual calculation is done through the Gratuity Accrual Initiator element. The
application keeps a record of the total accrued amount and the incremented accrued amount (periodic difference).
The monthly gratuity accrual considers the following details to calculate the gratuity:
Date of termination: The current pay period end date is taken as the date of termination.
Length of service: All types of paid leave are considered to calculate the length of service. Unpaid leave is
not included.
Base Salary: The base salary for gratuity payment is calculated through the salary formula selected at the
legal employer level.
Termination Initiator: The calculation assumes the employer as the termination initiator. And the
employee is entitled to the full amount.
Probation: If the employee is on probation, the accrual amount is zero.
Contract type: The entitlement is based on Contract type and is captured on Person Management.
Note: For information on Person Management Details, refer Section Person Data Setup of Oracle Fusion
HRMS (Saudi Arabia): HR Implementation and Functional Considerations white paper.
Entitlement : The entitlement for fixed contract and unlimited contract employees is 0.5 months salary
for the first 5 years and 1 month salary for each additional year Elements

User Defined Gratuity Formula


You can define your own formula for calculating monthly gratuity, which will override the seeded formula. To do
so:

1. Sign in to the Oracle Fusion application using a role that has the profile of a Superuser:
2. Navigate to the Payroll Calculation work-area.
3. From the Tasks pane, select the Manage Fast Formulas task.
4. Create a fast formula of type Oracle Payroll that calculates the monthly gratuity.

5. Navigate to the task Define Legal Entities for Human Capital Management:
6. Select the task Manage Legal Entity Calculation Cards:

7. If no Gratuity Employer Details card exists, create one. Otherwise, select this card.
8. In the Reference Formula field, select the formula you want to use to calculate monthly gratuity.
Elements
Elements are the building blocks of payroll and benefits. There is no limit to the number of elements that can be
defined. Policies or business rules that govern the allocation of these elements to workers can be specified at the
element level.
Elements can represent:
Earnings, such as salary, wages, and bonuses
Compensation, such as employee stock purchase and insurance plans
Absences from work
Tangible items distributed to persons, such as tools, uniforms, mobile phones, or computers
Statutory deductions, such as employee social insurance
Voluntary deductions, such as loans
Involuntary deductions, such as court orders
Employer social insurance and other employer liabilities
Elements are grouped into primary classifications, such as Earnings and Voluntary Deductions. In a human
resources department, you can use the primary classifications to identify groups of elements for information and
analysis purposes. In a payroll department, the classifications control processing, including the sequence in which
elements are processed and the balances they feed.
Oracle Fusion supplies many predefined elements (that cannot be modified at the implementation level), while
additional elements can be generated, defining certain types of compensation and payroll elements through
templates.
Element templates include the elements, balances, balance feeds, and formulas required for payroll processing.
Templates have various rules associated with them which will be used to create data based on certain criteria. The
template engine will get the values for the rules from the template and process the seeded template structure to
create appropriate data that is required.
Using the template infrastructure, the Saudi localization has defined its structures for creating a standard set of
elements for earnings, by modifying a global template questionnaire.
When creating an element the questionnaire that guides you through the creation depends on the classifications
selected for the element itself.
Once you complete the questionnaire and submit the process, the relevant payroll objects are generated. You now
have the ability to edit these objects (using the review pages and the object navigator) to ensure they fully meet you
business requirements.

Element Classifications
Global Payroll has defined a set of primary classifications and the Saudi localization has selected the ones that are
applicable for the country.
Additionally a set of secondary classifications and subclassifications have been defined specifically by the
localization.
Secondary classifications are used in the element template process to drive the questionnaire and also to
create the element with the needed characteristics.
Subclassifications are used to control balance feeds and identify a sub type of the particular classification.
All the classifications predefined for Saudi are listed in the Oracle_Fusion_HRMS_Saudi_Payroll_Data.xls on My
Oracle Support (MOS)
Secondary classifications and subclassifications can be created at implementation level and they do not have any
impact on the Saudi predefined data.

Primary Classifications

The following primary classifications are enabled for the Saudi localization:
Absences
Absence Accruals
Direct Payments
Employer Charges
Information
Involuntary Deductions
Pre-statutory Deductions
Social Insurance Deductions
Supplemental Earnings
Taxable Benefits
Voluntary Deductions
Standard Earnings
In the implementation phase, when creating an element though element template functionality, you are prompted
to select the primary classification for that element and this drives the questionnaire to use and also the
characteristics of the element that will be created.
Notes:
Subclassifications Standard Earnings Subject to GOSI is defaulted for all elements with primary
classification Standard Earning. This implies that all these elements will be part of the contributory salary.
Standard Earnings Subject to Unpaid Leave is available for all elements with primary classification
Standard Earning. This implies that all these elements will have negative amount which will be deducted
from the salary.
Subclassification Taxable Benefits Subject to Social Insurance is defaulted for all elements with primary
classification Taxable Benefits. This implies that all these elements will be part of the contributory salary.
Subclassification Absences Subject to GOSI is defaulted for all elements with primary classification
Absences. This implies that all these elements will be part of the contributory salary.
Subclassification Information Subject to GOSI is defaulted for all elements with primary classification
Information. This implies that all these elements will be part of the contributory salary.
Subclassification Supplemental Earnings Subject to GOSI is defaulted for all elements with primary
classification Supplemental Earnings. This implies that all these elements will be part of the contributory
salary.

Secondary Classifications

Secondary classifications are connected to primary classifications. The following secondary classifications have
been defined for the Saudi localization:
Primary Classification Standard Earnings:
Children Social Allowance
Cost of Living Allowance
Grade Allowance
Hourly Salary
Housing Allowance
Overtime Allowance
Shift Allowance
Social Allowance
Transport Allowance
Unpaid Leave
Primary Classification Voluntary Deductions:
Loans
Primary Classification Supplemental Earnings:
Gratuity Payments
Primary Classification Absences:
Maternity
Other
Sickness
Vacation
The selection of the secondary classification will drive the questions of the element template and the characteristics
of the element that is created. For the allowances created as standard earning these characteristics are described in
more detail in the section of element allowances.

Subclassifications

Subclassifications are connected to primary classifications. The following subclassifications are defined for the
Saudi:
Primary Classification Standard Earnings:
Standard Earnings Subject to GOSI
Standard Earnings Subject to Unpaid Leave

Primary Classification Information:


Information Subject to GOSI

Primary Classification Absences:


Absences Subject to GOSI
Primary Classification Supplemental Earnings:
Supplemental Earnings Subject to GOSI
Primary Classification Taxable Benefits:
Taxable Benefits Subject to GOSI

All these subclassifications are attributed by default to the elements created for the corresponding primary
classification.
During implementation, if there is a requirement to define an element that is not a standard earning, but is part of
the contributory salary, the steps to follow are:
1. Define a new subclassification and the corresponding subclassification rule.
2. Feed the contributory balance with this subclassification.

Reviewing Classifications

1. To review classifications, log in with a Payroll Manager role.


2. Navigate to task Manage Element Classifications in the Payroll Calculation work-area.
3. Select the appropriate Legislative Data Group (LDG) and view all the primary classifications defined for
the legislation connected to the selected legislative data group.

4. Select a specific classification to view secondary classifications and subclassifications defined for the
primary classification:
Element Templates
A specific element template is available in Saudi localization for the following primary classification:
Standard Earnings
For all other primary classifications, the standard global template is used also when creating Saudi elements.
When selecting Standard Earnings as primary classification:
If no secondary classification is selected, then the standard element template is followed and no specific
Saudi consideration is applied.
If the Allowances secondary classifications are selected, then allowances are created following Saudi
specific rules that apply to the specific allowance type.
If Unpaid Leave secondary classification is selected, an element with Saudi specific characteristics is
created.
In the global standard template, the section of Calculation Rules is not displayed because the related global objects
must not be created for these elements since Saudi specific objects must be created instead.
Viewing, for example, an element created with secondary classification Hourly Salary:

You can see that specific input values have been created and a fast formula (ZHRX-SA-V-
HOURLY_HOURLY_FF) is used to perform the calculations for this type of allowance.
When selecting Voluntary Deductions as primary classification:
If no secondary classification, then the standard element template is followed and no specific Saudi
consideration is applied.
If the Loans secondary classification is selected, then deduction element is created following Global
specific rules that apply to loans.
From a template questionnaire perspective, there is no difference with the global standard template, but in this
case, set Saudi-specific objects are created in addition to the global ones.
Further information is provided in the element details section of the document.

Availability of Element Template Functionality Based on Product License

The availability of features in element templates depends on the type of license you have.
HR-Only: As an HR-only customer, you get access to the basic version of the element templates. These templates
create the element and you need to create the input values, formulas, balances to meet your business requirements.
Payroll Interface: As a payroll interface customer, you get access to a number of payroll features not available to
an HR-only customer. This includes access to the full earnings element that will create the element, input values,
formulas, balances. These earnings elements can be processed through the calculation to Gross process which is
also available to Payroll Interface customers. Any other type of element, such as deductions, is created using the
basic version of the element templates and you need to create the input values, formulas, balances.
Payroll: A payroll customer gets access to the full set of earning and deduction templates. These templates create
the element, input values, formulas, balances.
Disclaimer Note: If you want to use an element in the payroll process, then the element must be created after the
payroll license is set. This creates the full set of data needed for payroll processing, such as element definition,
input values, balances, formulas. If payroll license is set after the element is created the above data will not be
created.
The process for setting licenses is described below:
1. Navigate to Payroll Process Configuration Task using the Functional Setup Manager (FSM):

2. Navigate to Default Group Tab:

3. If you have overridden the group, then the payroll license must be set for that group.
4. Select Payroll License to decide Payroll License parameter name and edit it. Change the appropriate
license value.
You can enter following values:
HR_ONLY This must be set when customer is having an HR only license.
PAYROLL_INTERFACE This must be set when customer is having HR only and payroll interface
license.
PAYROLL This must be set when customer is having both HR and Payroll licenses.
5. Navigate to Manage Default Process Configuration Group Profile Option Values Task in the FSM:

6. Set the appropriate configuration group in the profile option value field:

Elements: Allowances, Unpaid Leave and Loans


Earning allowances, unpaid leave and loans are the elements for which Saudi localization has predefined specific
calculation rules.

Allowances
The calculation rules for the below allowances are generated when creating the element using the related template.
Implementation teams need to elect the appropriate secondary classification when generating a new allowance
element. Implementation teams can also set up grade rates and value definitions.
The calculations of these allowances are triggered through element entries.
Children Social Allowance
The children social allowance depends on the number of dependent children. This allowance is paid to local
nationals only.
The following input is required for the calculation:
Citizenship information in the calculation card for the person.
Contact details for the employee in the contacts section in the Manage Person page with contact type
Child. The dependent must also be marked as Statutory Dependent. Number of dependent children is
based on the data entered here.
A range value for the seeded value definition Children Social Allowance. Allowance per child is based
on the value entered here.
To create the range value:
1. Sign in to the Oracle Fusion application using a role that has the profile of a payroll manager.
2. Navigate to task Manage Calculation Value Definitions in the Payroll Calculation work area.
3. Select the value definition Children Social Allowance:

4. Enter the value of the allowance per child by adding a row in Range Values
Note: The From Value must be 0, while any value can be chosen for the To Value since it does not affect
calculation.
Note: The process of entering a value in value definitions is the same for the other allowances.

Cost of Living Allowance


The cost of living allowance can be a flat amount or a percentage of salary.
The following input is needed to perform the calculation:
Range value for the seeded value definition Cost of Living Allowance Percent.
Range values for the seeded value definitions Maximum Cost of Living Allowance and Minimum
Cost of Living Allowance: these two amounts will be used to set the maximum and minimum amount,
which a person eligible for the cost of living allowances.
Attach a Gratuity Salary formula, in the employer gratuity PSU level calculation card, if not already attached. The
value returned by this formula is used to take the base monthly salary for this allowance. The Cost of Living
Allowance Percent is applied to this monthly salary basis and the resulting amount is compared with the
Maximum Cost of Living Allowance and Minimum Cost of Living Allowance. If this is out of range, this is
adjusted.
Grade Allowance
The basic salary is a fixed amount that is paid to the employee according to their grade. Since rates can be entered
for each grade, it is suggested that you use grade rate functionality for it.
The following is the input needed to perform the calculation:
Grades and grade rates must be setup following standard global process. The grade must be associated to
the payee in the Employment page.
Create an element entry for the payee entering the grade rate ID as an input value entry for Grade Rate.
Hourly Basic Salary
For employees under hourly contract the amount paid monthly is based on the number of hours worked during
the month. The hourly rate depends on the grade of the employee.
The following input is required to perform the calculation:
Create a grade and grade rate and associate it to the employee in Employment page and in Element entries
as shown previously in Grade Allowance.
The value is calculated based on the hours worked in month * value returned from the grade rate table.
Hours worked will be entered as input value.
Housing Allowance
Housing allowance depends on the grade and marital status of an employee. The allowance can be a percentage
(based on grade and marital status) or an amount (based on grade or marital status). For a percentage based
allowance, the calculated allowance amount can be subject to a maximum and minimum limit.
If the employee avails accommodation that is provided by the employer, then the monthly paid allowance is zero.
An override feature is provided where you can enter the amount of housing allowance and then no calculations are
performed.
The following input is required to perform the calculation:
Housing allowance is paid to employee if accommodation is not provided by the employer. This
information is tracked at payroll relationship level and this value is defaulted to No in case there is no
value entered at payroll relationship level.
Marital status must be set for person in order to calculate the value of housing allowance and if no marital
status is set, no allowance is paid to the employee. Marital status is retrieved from the legislative
information section.
Create range values for the seeded value definition Housing Allowance Grade Rate for Married and
Housing Allowance Grade Rate for Single. In the value field of the range value UI, you can select the
grade rate from the ones that have been defined as grade rates.
Attach a Gratuity Salary formula, in the employer gratuity PSU level calculation card, if not already
attached. The value returned by this formula is used to take the base monthly salary for this allowance if
you have entered value of input value Rate value to be used as Percent.
Create range values for the seeded value definitions Maximum Housing Allowance for Married,
Minimum Housing Allowance for Married, Maximum Housing Allowance for Single and
Minimum Housing Allowance for Single. In the value field for range value, you must enter minimum
or maximum value depending on the marital status. These values are used to get the allowance amounts if
you have entered value of input value Rate value to be used as Percent. More specifically, if this
calculation option is selected, the rate is applied to this monthly salary basis. The resulting amount is
compared with the Maximum and Minimum values of the allowance and, if this is out of range, is
adjusted.
Note: The calculation of housing allowance (similar to other allowances) is triggered by creating an element entry
for the payee and parameters that will drive the calculation is entered as input values:
Override Amount: allows overriding the final value of calculation.
Rate Value to be used as: drives the calculation method.
Overtime Allowance
Overtime allowance gets paid to an employee for hours worked beyond regular hours on normal working days.
The employee also gets paid when they work on rest days or holidays.
The overtime rate is a percentage of the salary that depends on the grade and is different for hours beyond regular
(on normal working days) and hours on rest days.
The following is the input needed to perform the calculation:
Attach a Gratuity Salary formula, in the Employer Gratuity PSU level calculation Card, if not already
attached. The value returned by this is the base monthly salary that is converted to a hourly salary using
ROUND((monthly_salary * 12)/(365 * 8),2)
Create range values for the seeded value definitions Overtime Allowance Grade Rate for Regular
Days, Overtime Allowance Grade Rate for Rest Days. In the value field of the range value UI, you
must choose the grade rates that are used to get the amount for rest and normal day overtime.
Shift Allowance
Shift allowance depends on the grade and may also depend on the nationality of an employee: the allowance can be
in percent (based on grade and nationality) or in amount (based on grade and nationality). For a percent based
allowance, the calculated allowance amount can also be subject to a maximum and minimum limit.
An override facility is also provided wherein you can enter the amount and then no calculations are performed.
The amount entered is processed directly as the shift allowance.
The following is the input needed to perform the calculation:
Create range values for the seeded value definitions Shift Allowance Grade Rate for National, Shift
Allowance Grade Rate for Non-National. In the value field of the range value page, you must choose
the grade rates, which are used to get the shift allowance amount for Saudi and Non Saudi citizens.
Create range values for the seeded value definitions Minimum Shift Allowance, Maximum Shift
Allowance. In the value field of the range value UI, you must enter minimum or maximum value of the
shift allowance. These values are used to get the allowance amount if you entered the input value Rate
value to be used as Percent.
Social Allowance
Social allowance depends on marital status of the employee and is paid only to Saudi citizens.
The following is the input needed to perform the calculation:
Enter the citizenship in the calculation card for the person.
Marital status must be set for person in order to calculate the value of social allowance and if no marital
status is set, no allowance is paid to the employee. Marital status is retrieved from the legislative
information section.
Create range values for the seeded value definitions Social Allowance for Married, Social Allowance
for Single. In the value field of the range value, you must enter social allowance amount for the married
or single employee.
Transport Allowance
Transport allowance depends on the grade and marital status of an employee. The allowance can be a percentage
(based on grade and nationality) or an amount (based on grade or nationality). For a percentage based allowance,
the calculated allowance amount can also be subject to a maximum and minimum limit.
If transportation is provided by the employer, then the monthly paid allowance is zero.
An override feature is provided where you can enter the amount of transport allowance and no calculations are
performed.
The following is the input needed to perform the calculation:
Enter the transport allowance paid to employee if no transportation is provided by the employer. This
information is tracked at payroll relationship level and this value is defaulted to No, in case there is no
value entered at payroll relationship level.
Enter the citizenship in the calculation card for the person.
Create range values for the seeded value definition Transport Allowance Grade Rate for National and
Transport Allowance Grade Rate for Non-National. In the value field of the range value, you can
select the grade rate from the ones that have been defined as grade rates.
Attach a Gratuity Salary formula, in the Employer Gratuity Details card, if not already attached. The
value returned by this formula is used to take the base monthly salary for this allowance if you have
entered value of input value Rate value to be used as Percent.
Create range values for the seeded value definition Maximum Transport Allowance, Minimum
Transport Allowance. In the value field of the range value, you must enter minimum or maximum
depending on the marital status. These values are used to get the allowance amounts if you have entered
value of input value Rate value to be used as Percent.

Allowances Setup: Worked Example

The requirement is to create an overtime allowance by which an overtime percentage of 110% is paid for regular
days and 150% is paid for rest days.
The following tasks need to be performed:
1) Create grade rates to store the percentages. Navigate to task Manage Grades in Workforce Structures
work area.
2) Add a grade rate for each one of the percentages:

3) Associate these grade rates to range values. Navigate to the task Manage Value Definitions in the
Payroll Calculation work area:

4) Associate the appropriate Grade Rate to the Range Value:


5) When an element entry is created for an Overtime Allowance element, the hours entered are multiplied by
the hourly salary and the appropriate overtime percentages defined in the previous steps are applied.

Unpaid Leave

Unpaid leave element is generated by selecting unpaid leave as secondary classification in the element template.
The unpaid elements input value Days feeds the Leave Without Pay balance. The Leave Without Pay balance is
used in Gratuity calculation to get the unpaid or unauthorized absence.
This element also reduces the earnings, based on the amount calculated by the unpaid leave formula.

Creating an Allowance Element: Worked Example

This worked example describes how you can create an allowance element for Children Allowance.
1. Sign in to the Oracle Fusion application using a role that has the profile of a Payroll Manager:
2. Select Manage Elements in the Setup and Maintenance or Payroll Calculations work area:

3. On the Manage Elements page, click Create.


4. On the Create Element window, select the LDG and a primary classification, then click Continue:

5. Complete the fields at the top of the Create Element page, and then answer the questions:
6. Click Next, and complete the rest of the questionnaire:

7. Verify the information and click Submit to create the new element:
8. On the Element Summary page, provide additional information as needed, such as input values, processing
rules, and eligibility:

Use the Element Overview panel to navigate through the setup pages.
Note: Input values have been created for this element to receive information needed to calculate the value of
the allowance.
Note: Element eligibility must be defined so that the element is linked to an element entry.
9. In the Element Overview panel, select Actions, and Create Element Eligibility.
10. On the Element Eligibility page, enter a name in the Element Eligibility Name field and click Submit.
Note: If you enter only a name and no eligibility criteria, the element is eligible for all employees.

Voluntary Deductions: Loans

The Loan element for Saudi is created for the primary classification Voluntary Deductions and the secondary
classification Loan.
Loan approval, processing and payments are outside the scope of payroll process. The payroll process only
supports the loan recovery process. Since the loan is interest free, there is no need for interest calculation.
The element that is created through the element template is the loan recovery element. Multiple loan recovery
elements can be created if the enterprise has several types of loans.
The input data that is needed to perform the loans calculation is entered though the input values at element entry
level.
1. The input fields are generated by the element template when creating the element:
2. Loan recovery is triggered for an employee by adding an element entry for an element classified as loan:

The following points must be considered when entering data:


Effective Start Date: Date on which the loan recovery will start.
Effective End Date: End date of the element entry (if the element is recurring) indicating the last period
when the loan must be recovered.
Period Type: Indicates the frequency with which the value entered in the amount field recurs. Typically it
is either Calendar Month or Annually.
Amount: Indicates the amount to be recovered for the instance of the loan. If period type is Calendar
Month, then the amount is deducted monthly. If period type is Annually, then the monthly deduction
equals Amount divided by 12. If a loan is suspended for a period, then an instance with monthly
frequency amount of 0 is created.
Gratuity Payment Element
The Saudi localization has predefined the Gratuity Payment element that is used to process gratuity payments.
This element is automatically calculated in payroll whenever the Employee Gratuity Details card is automatically
generated by the termination process.
This element is feeding the gross pay and net pay balances:

Salary Basis and Additional Allowance Elements


In addition to the previously described allowances that are created using Saudi specific templates, other earnings
such as salary basis and compensation elements can be created using global templates.
The following steps show how to create a regular earnings element for basic salary:
1. Follow steps 1-3 used in the worked example for allowance creation.
2. On the Create Element window, select the LDG and a primary classification.

3. Click Continue.
4. Complete the fields at the top of the Create Element page, and then answer the questions:
5. Click Next, and complete the rest of the questionnaire:

6. Verify the information and click Submit to create the new element:
7. On the Element Summary page, provide additional information as needed, such as input values, processing
rules, and eligibility:

Use the Element Overview panel to navigate through the setup pages.
8. Repeat this entire process to create a set of elements to support your business needs. For example, you might
create another element (ZHRX-SA-RRF-Allowance) for an additional allowance.

Auto Indirect Elements and Creation of Element Eligibility


Auto Indirect elements have been predefined by Saudi localization to trigger Social Insurance and Gratuity
Calculations once the related person level cards have been assigned to the person. These elements are
automatically assigned as an element entry to the person:
This assignment is done without any action at the implementation level, but before assigning any person a
calculation card the implementation team must create element eligibility for the Auto Indirect elements as in this
example:

This task is to be performed just once in the implementation process.

Proration and Retroactivity


In scenarios where an employee has a mid-period change, for example, changing the start or end of employment
period during a month, a set of elements must be prorated.
In scenarios where the employee has a retrospective change, the payroll process must recalculate payroll for past
periods and generate retroactive deltas to be processed in the current period.

Proration

Prorating Earnings
When you create an element you must consider if the element may be subject to proration, for example, an
employee may have a hire date or termination date after the 1st of the month which will affect the calculation of
pay and non-statutory deductions.
For elements enabled for proration the template associates by default the global standard proration formula:

Proration formula GLB_EARN_PRORATION uses natural days proration. For example, when there is a hire or
termination in the course of the month, it uses as a proration factor:
Employment days in the period or Calendar days in the period
To meet different business requirements, implementation teams can create your own specific proration formula
and attach it to the elements that follow these business requirements.
Events that trigger the proration calculation are identified through the selected proration group.
1. Log in with a Payroll Manager role
2. Navigate to task Manage Event Groups in the Payroll Calculation work-area
3. Select Entry Changes for Proration
4. View the changes that trigger proration

A global even group is pre-defined, which is not Saudi-specific.

Retroactive Pay

When you create an element you must consider if the element may be subject to retroactive changes, for example,
an employee receives a pay award that is backdated to a previous pay period. Only elements that are set up to
include a retroactive event group can have retroactive element entries.
Identify the events that trigger retroactive pay calculation by specifying the retroactive group.
1. Sign in to the application with a Payroll Manager role.
2. Navigate to Payroll Calculation work area
3. From the Tasks pane, select the Manage Event Groups task.
4. In the Manage Event Groups page search for event group by Retroactive type and Legislative Data
Group.

5. From search results, select the event group and view the Date Effective Events for the event group.
A global event group is predefined, which is not Saudi-specific. Additional event groups can be added in the
implementation phase, if required.
Saudi Arabia-Specific Retroactive Pay Elements
For calculating retroactive GOSI, the following elements have been created.
Employee GOSI Annuities Retro
Employer GOSI Annuities Retro
Employer GOSI Hazards Retro
Employee GOSI Arrears Retro
Employer GOSI Subsidy Retro
Employee GOSI Saned Retro
Employer GOSI Saned Retro
GOSI Reference Salary Retro
NonSaudi GOSI Hazards Retro
NonSaudi GOSI Reference Earnings Retro
NonSaudi Joiner GOSI Hazards Retro
NonSaudi Joiner GOSI Reference Earnings Retro
NonSaudi Joiner and Leaver GOSI Hazards Retro
NonSaudi Joiner and Leaver GOSI Reference Earnings Retro
NonSaudi Leaver GOSI Hazards Retro
NonSaudi Leaver GOSI Reference Earnings Retro
Saudi GOSI Annuities Retro
Saudi GOSI Hazards Retro
Saudi GOSI Reference Earnings Retro
Saudi Joiner GOSI Annuities Retro
Saudi Joiner GOSI Hazards Retro
Saudi Joiner GOSI Reference Earnings Retro
Saudi Joiner and Leaver GOSI Annuities Retro
Saudi Joiner and Leaver GOSI Hazards Retro
Saudi Joiner and Leaver GOSI Reference Earnings Retro
Saudi Leaver GOSI Annuities Retro
Saudi Leaver GOSI Hazards Retro
Saudi Leaver GOSI Reference Earnings Retro

Note:
1. If you have a retrospective change, the difference to the GOSI Annuities and Hazards is deducted in the current or
open pay period.
2. If the change in salary is backdated to January, and the GOSI Reference Salary is used to determine GOSI
Annuities and Hazards, then the GOSI Reference Salary will need to be amended, otherwise the GOSI calculation
will be unaffected.

Element Template Change


The required calculation value definitions are now automatically integrated with the creation of
allowance elements. The allowances that are impacted are:
Social Allowance
Cost of Living Allowance
Child Allowance

When you create an allowances element you can specify the allowance rules in the Additional
Details page:
Social Allowance
Social Allowance for Married
Social Allowance for Single
Cost of Living Allowance
Cost of Living Allowance Percent
Minimum Cost of Living Allowance
Maximum Cost of Living Allowance
Children Social Allowance
Children Social Allowance
Balances
Payroll balances show the accumulation of values over a period of time. The values can be currency, hours, or any
other numeric value. Most of the required balances are predefined and additional balances are created automatically
when creating elements. Implementation teams can edit the definition of these generated balances, or create
additional balances for calculations or reporting.
When a balance definition (balance type) is created, balance category and a unit of measure can be selected. Each
balance definition is grouped in a predefined balance category for quicker processing. Balance categories are
legislation-specific and cannot be modified.
Each balance can have multiple dimensions, which define the specific value to be retrieved. Balance dimensions
are predefined and typically combine these components:
Time span, such as run, period to date, or fiscal year to date
Employment relationship level, either assignment, terms, or payroll relationship
Context, required for some balances only, such as tax reporting unit (TRU), element, or payroll
When a specific balance dimension is linked to a balance type, this results in creating a defined balance.
The value assigned to a balance during processing is determined by balance feeds defined for the balance.
Balance feeds can be by element input values or by balance classification run results.
Balance Feeds by Element: Indicates one or more element input values to add or subtract from a balance.
If a balance is fed by a single element, it is called a primary balance.
Balance Feeds by Classification: Indicates that all elements belonging to a specific classification will feed
that balance. Any type of classification can be used to feed the balance but it is to be remarked that if a
primary classification is added as a balance feed, the children of this classification from the secondary or
subclassifications cannot be added. Also, you cannot use both secondary classifications and
subclassifications in the same balance feed.
Balances are important for reporting because in most of the reports balances represent the values that are displayed
in the output. Balances can be aggregated (through balance attributes) in balance groups and balance groups are
the entities that are used by payroll reports to identify the balances to be included in specific sections of the report.
A set of balance definitions are provided by global payroll, but localizations have a predefined set of definitions in
addition to global data.
Saudi localization has predefined data related to the following balance definitions:
Balance Categories (enabling of global categories)
Balance Types
Balance Dimensions and Usages (enabling of global dimensions)
Defined Balances
Balance Groups and Attributes

Balances Definitions predefined for Saudi


This section describes the predefined balance definitions for the Saudi localization and related tasks at
implementation level.
A detailed list of balances definitions predefined for Saudi can be found in the Saudi balances spreadsheet
Oracle_Fusion_HRMS_Saudi_Payroll_Balances.xlsx on My Oracle Support (MOS).

Balance Categories

The following global categories are enabled for Saudi Arabia:


Earnings
Total Payments
Social Insurance Deductions
Employer Charges
Information
Voluntary Deductions
Pre-Statutory Deductions
Involuntary Deductions
Absences
Miscellaneous
Supplemental Earnings
Hours
Taxable Benefits
Total Earnings
Direct Payments
Note: When creating a new balance in implementation phase, it must be associated to one of the predefined
categories and categories cannot be added or modified in implementation phase.
Balance Types

Balance types predefined by the Saudi localization are listed in the Saudi Balances Spreadsheet:
Oracle_Fusion_HRMS_Saudi_Payroll_Balances.xlsx on My Oracle Support (MOS).
This section describes the balances that affect payroll calculation and that are likely to be fed by elements created
in the implementation phase.
A separate section is dedicated to the net pay balance due to its impact on the payment process.
Gross
Balance Gross Earnings collects all the gross earnings applicable for Saudi and is fed by 2 primary classifications:
Standard Earnings
Supplemental Earnings
All elements created at the implementation level with these primary classifications feed this balance.
Unpaid Leave
Balance Subject to Unpaid Leave: Collects all the earnings that are not due to be paid when an employee is on
unpaid leave. This balance is fed by subclassification Subject to Unpaid Leave.
This subclassification is associated by default to earnings with primary classification Standard Earnings and
Information and so all elements created in the implementation phase with these primary classifications will feed
this balance.
Balance Leave Without Pay: Used to track the unpaid absences that are used in Gratuity Calculation.
Social Insurance
Balance GOSI Annuities: This balance is the sum of Employee GOSI Annuities (Social Insurance deductions)
and Employer GOSI Annuities (Employer charges). It collects all the earnings that are liable to Social Insurance
and fed by subclassification Subject to Social Insurance.
This subclassification is associated by default to earnings with primary classification Standard Earnings and
Information and so all elements created in the implementation phase with these primary classifications feeds this
balance.
The value of this balance is used as the contributory salary if this has not been overridden.
Balance Subject To GOSI is used as base in the contributions calculations. Subject to Social Insurance is designed
to store the earnings that make up the contributory base, but for private sector the base can be overridden or
adjusted so, eventually, if there is no override or adjustment balance, contributory salary balance is equal to balance
Subject to Social Insurance, otherwise it will account for the override or adjustment.
Balance GOSI Hazards is used to store employers payment towards Hazards components for each employee.

Net Pay Balance

During the payment process, the net pay balance is used to store the amount to be transferred as remuneration for
the payee. A net pay balance, named Net Pay, is predefined in Saudi, and no additional setup is required during the
implementation phase.
To view the Total Pay balance:
1. Select Manage Balance Definitions in the Payroll Calculations or Setup and Maintenance work areas.
2. Enter Net Pay in the Name field and select a Saudi LDG, then click Search:

3. Click the Net Pay balance in the Search Results to view the balance information:

Note: The Use for Remuneration field must be selected.


4. Click Balance Dimensions in the left panel to display the dimensions associated with this balance:

Note: The Core Relationship Payments is associated with this balance.


5. Click Balance Feeds in the left panel to display the classifications that feed this balance:
Note: all elements created in the implementation phase with these primary classifications feed this balance.

Balance Dimensions and Defined Balances

Balance dimensions enabled by the Saudi localization are listed in the Saudi Balances Spreadsheet
Oracle_Fusion_HRMS_Saudi_Payroll_Balances.xlsx on My Oracle Support (MOS).
As per the employment model, balances are maintained at all four levels, that is: Payroll Relationship, Payroll
Terms, Payroll Assignment, and Group levels.
The only dimensions that can be selected when creating a balance in the implementation phase are dimensions
enabled by the Saudi localization.
Combining balance types and enabled dimensions Saudi has delivered a set of defined balances that are listed in the
Saudi Balances Spreadsheet Oracle_Fusion_HRMS_Saudi_Payroll_Balances.xlsx on My Oracle Support (MOS).

Balance Groups and Attributes

Balance Groups group together balances. In the Saudi localization, they are used mainly for reporting or online
viewing purposes, to identify balances that must be considered in specific sections. The way these balance groups
are used in specific features, such as Statement of Earnings (SOE) are detailed in the sections describing the
features in detail.
The following balance group has been predefined in the Saudi localization:
SA_PAY_ARCH_GROUP_BALANCES_GROUP

This balance group is used in the payslip, whereas all other reports use the global balance groups, to which country
specific balances are connected.
The connection between defined balances and balance groups is managed through balance attributes.
Balance attributes can either be:
Created automatically through a defaulting mechanism depending on balance category and dimension
Predefined by localization
The Saudi Balances spreadsheet Oracle_Fusion_HRMS_Saudi_Payroll_Balances.xlsx contains information on:
Defaulting criteria
Attributes predefined by the Saudi localization
When a balance that meets defaulting criteria is created in implementation phase the related attribute is
automatically associated to the defined balance.
Defaulting criteria and attributes cannot be added or modified in the implementation phase.
Balance Groups can be restricted for a specific localization, so that only balances of certain dimensions or
categories are associated with a Balance Group. This is done through data that is predefined in the Pay Balance
Usage Items table. Data predefined in this table for the Saudi localization is shown in the Saudi Balances
spreadsheet Oracle_Fusion_HRMS_Saudi_Payroll_Balances.xlsx on My Oracle Support (MOS).

Balances and SOE


The online Statement of Earnings (SOE) is a feature within payroll that allows the end-user to view all the relevant
information for an individual employees payroll run or a prepayment in a single place so that the results can be
easily viewed and verified.
This typically covers personal information, employment information, payroll information, absence information,
run results, messages and balances.
The SOE feature is part of the global product and has been customized to meet country specific requirements.
The scope of this document is to explain the following:
Criteria that drives the inclusion of specific balances in certain sections (the ones that contain balances
results) of the SOE
Predefined data for the SOE for the Saudi localization
How you can include user-defined balances in SOE

SOE Sections and Related Balances

Payroll results are displayed in the SOE in several sections:


The following paragraphs mention the sections populated by balance results. For each section the balance groups
and related attributes connected to the section are listed.
Note: The Saudi localization has not predefined any balance group or attribute for SOE, so the global balance
groups are used.
Quick Reference Summary

The Quick Reference Summary is split into four tabs. The following contain data retrieved from balance results:
Gross-to-Net: This tab includes results for balances (defined balances) connected to balance group:
GLB_SUMMARY_GROSS_TO_NET_BALANCE_GROUP that is connected to attribute
GLB_SUMMARY_GROSS_TO_NET_ATTRIBUTE
Information: This tab includes results for defined balances connected to balance group:
GLB_SUMMARY_INFORMATION_BALANCE_GROUP that is connected to attribute
GLB_SUMMARY_INFORMATION_ATTRIBUTE
Earnings
This section includes results for defined balances connected to balance group:
GLB_SOE_EARNINGS_BALANCE_GROUP. This is connected to the following attributes:
GLB_EARNINGS_ATTRIBUTE
GLB_SUPPLEMENTAL_EARNINGS_ATTRIBUTE
GLB_TAXABLE_BENEFITS_ATTRIBUTE
Deductions
This section includes results for defined balances connected to balance group:
GLB_DEDUCTIONS_BALANCE_GROUP. This is connected to the following attributes:
GLB_PRE_STAT_DEDUCTIONS_ATTRIBUTE
GLB_INVOLUNTARY_DEDUCTIONS_ATTRIBUTE
GLB_VOLUNTARY_DEDUCTIONS_ATTRIBUTE
GLB_TAX_DEDUCTIONS_ATTRIBUTE
GLB_SOCIAL_INSURANCE_DEDUCTIONS_ATTRIBUTE
Information
This section includes results for defined balances connected to balance group:
GLB_INFORMATION_BALANCE_GROUP that is connected to attribute
GLB_INFORMATION_ATTRIBUTE
Employer Contributions
This section includes results for defined balances connected to balance group:
GLB_SOE_EMPLOYER_CHARGES_BALANCE_GROUP. This is connected to the following attributes:
GLB_EMPLOYER_TAXES_ATTRIBUTE
GLB_EMPLOYER_CHARGES_ATTRIBUTE
Direct Payments
This section includes results for defined balances connected to balance group:
GLB_DIRECT_PAYMENTS_BALANCE_GROUP that is connected to attribute
GLB_DIRECT_PAYMENTS_ATTRIBUTE
Taxable Benefits
This section includes results for defined balances connected to balance group:
GLB_TAXABLE_BENEFITS_BALANCE_GROUP that is connected to attribute
GLB_TAXABLE_BENEFITS_ATTRIBUTE
Predefined SOE Data for Saudi

The Saudi localization uses the global Balance Groups for SOE and consequently the global attributes.
To display balances seeded by the Saudi localization in sections where attributes are not generated by default, there
is a predefined assignment of attributes to a set of defined balances.
The complete list of Saudi delivered associations between defined balances and attributes is contained in the Saudi
Balances Spreadsheet Oracle_Fusion_HRMS_Saudi_Payroll_Balances.xlsx on My Oracle Support (MOS).
For Saudi, the following connections are defined between balances and sections of the SOE report.
Gross-to-Net Summary Section
Employee GOSI Annuities
Gross Earnings
Gross Pay
Net
Net Pay
Information Summary Section
Employee GOSI Arrears
GOSI Reference Earnings
Gratuity Paid
Leave Without Pay
Subject to GOSI

Earnings Section
Gratuity Paid

Deductions Section
Employee GOSI Annuities

Employer Contributions Section


Employee GOSI Arrears
Employer GOSI Annuities
GOSI Hazards

Information Section
GOSI Reference Earnings
Employee GOSI Arrears
Subject to GOSI
Attributes cannot be created or modified in the implementation phase.

User-Defined Balances and SOE

When you need to create a defined balance with a specific balance category that is mapped in the balance attributes
defaulting setup, then an attribute is associated to the defined balance. This also occurs for balances created by the
element template. If that attribute is connected to a balance group that is displayed in a section of SOE, then the
balance you have defined will also be displayed.

Payroll Setup
Before processing payroll or post payroll processes a set of base tasks must be performed by the implementation
team to define basic structures such as:
Banks and Bank Accounts
Organization Payment Methods
Consolidation Groups
Payroll Definitions
Salary Basis
Compensation Elements
Currency Conversion Rates

Payments Setup
To process payments, a payment method must be assigned to a payee. Setup of banks and branches must be done
before entering bank accounts and payment methods for the payee.
No banks or branches are predefined in the Saudi localization. Banks and branches must be defined during
implementation. This can be done manually, by entering the banks and branches in the application, or it can be
done in a mass upload process.

Banks

To define banks:
1. Sign in to the application with a role that has implementation privileges, such as
APP_IMPL_CONSULTANT.
2. Select Manage Banks in the implementation project task list:
3. Click Create.
4. On the Create Bank page, provide the required information:

In order for the EFT process to be completed successfully the Bank Code should be entered as the Bank Number.

Bank Branches

To define branches for the banks you created:


1. Select Manage Bank Branches in the implementation project task list:

2. Click Create.
3. On the Create Bank Branch page, provide the required information:
Bank Accounts

Once banks and branches are set up, you can define the bank accounts for the organization. Normally,
implementation teams set up bank accounts that are used at an organizational level, such as the source bank
accounts for payments, rather than bank accounts at the individual payee level.
To define bank accounts:
1. Select Manage Bank Accounts in the implementation project task list:

2. Click Create.
3. On the Create Bank Account page, provide the required information:
Note: If you want to use this bank account for processing payments related to payroll, select the Payroll
option in the Account Use field.
Note: The only Legal Entities that can be selected are the ones that have been assigned to a Primary Ledger.
Assignment can be done in task Assign Legal Entities:

Organization Payment Methods

After setting up banks, you can define the payment methods that can be used within the organization itself.
No organization payment methods are predefined in the Saudi localization. Implementation teams will need to
create the ones applicable to the enterprise.
To define organization payment methods:
1. Select Manage Organization Payment Methods in the implementation project task list:
2. Click Create.
3. Select the LDG associated with this payment method:

4. On the Create Organization Payment Method page, enter the required information:

In the process of creating an organization payment method, a payment source needs to be created:
Note: Saudi supports the following Payment Types: Cash, Cheque, and Electronic Funds Transfer (EFT).

Consolidation Groups and Payroll Definitions


Consolidation groups and payroll definitions must be set up before running a payroll.

Consolidation Groups

Consolidation groups are used within the organization to enable grouping of different payrolls for reporting
purposes. No consolidation groups are predefined in Saudi. If you are creating payroll definitions for the
implementation, you must define at least one consolidation group first, since it is mandatory information for
payroll definitions.
To set up consolidation groups:
1. Sign in to the application with a role that has implementation privileges, such as
APP_IMPL_CONSULTANT.
2. Select Manage Consolidation Groups in the implementation project task list:

3. On the Manage Consolidation Groups page, click Add Row:


4. Enter a name and select the LDG. Description is optional, but useful to provide.

5. Click Save.

Payroll Definitions

Payroll definitions contain calendar and offset information that determine when payments are calculated and paid.
Using payroll definitions, you can specify payment frequency, processing schedule, and other parameters for a
particular payroll. Payroll period types, such as weekly or monthly, determine the interval at which you pay
employees. The only period type supported for Saudi is Calendar Monthly.
Each payroll definition can be associated with only one payroll period type, and you must set up at least one
payroll definition for each payroll period type that you use to pay employees. When you create a payroll definition,
the complete payroll schedule is automatically generated, based on the selected payroll period type, any offsets or
calendar adjustments, and the number of years that you specify. Once you have saved a payroll definition, you can
assign employees to it on the Manage Payroll Relationships page.
Before you can create a payroll definition, you must have already defined the LDG and consolidation group.
No payroll definitions are predefined in Saudi.
To set up payroll definitions:
1. Select Manage Payroll Definitions in the implementation project task list:

2. Click Create.
3. Select the LDG for this payroll definition, and click Continue:
4. On the Create Payroll page, enter the required information:

Note the following:


You must select an existing consolidation group.
A Default Payment Method must be selected in order to be able to run the prepayment process.
Click Add Row in the Valid Payment Methods section to add an organization payment method to use as
the default, plus any additional payment methods that are valid for this payroll. You can select any
organization payment method defined for the LDG that is linked to this payroll definition.
5. Click Next, and provide the required information on the Payroll Offsets page:
Where:
Number of Years: number of years for which payroll calendars are created starting from the
Effective As-of-Date
Offset Details: used to determine the key dates within the monthly payroll process.
Note: Date paid is used in the EFT file.
6. Click Next, and review the payroll calendars that have been generated:

7. Click Next, and then finalize the creation of the payroll definition by clicking on Submit.

Salary Basis and Compensation


Once you have created the elements that are meant to hold the payee basic salary and compensation information,
you can perform the setup required to attribute the gross compensation to the payee.

Salary Basis

To set up the salary basis:


1. Sign in to the application with a role that has compensation administrator privileges, such as
CMP_ADMIN_ALL.
2. Navigate to Compensation work area:
3. Select Manage Salary Basis, and then click Create:

4. On the Create Salary Basis page, select the payment element to use for the salary basis and provide the
required information:

Note: Selecting Amount as input value will enable the prorating of the amount by period frequency when payroll
is run.

Individual Compensation

To create a compensation plan, such as for a car allowance:


1. In the Compensation work area, select Manage Plans and click Create:
2. Select the payroll element for the compensation plan, such as a car allowance:

3. Select the Dates tab and set the payment start and end dates:

4. Select the Eligibility tab to define eligibility for the plan:

5. Select the Plan Access tab and indicate whether to restrict access to this plan:

6. Select the Instruction Text tab and add any instructions you want to associate with the plan.
Currency Conversion Rates
Ensure that the currency conversion rates are defined before running a payroll for GCC citizens.

Defining Currency Conversion Rates

To define the currency conversion rates:


1. Sign in to the application in the implementor role, such as APP_IMPL_CONSULTANT.
2. From the Navigator>Setup and Maintenance> Implementation project task list, search for Manage Daily
Rates task.
3. Click the Go to Task icon.

4. In the Manage Daily Rates page, click the Daily Rates tab.
5. Click Create in Spreadsheet to download the Daily Rates spreadsheet template.
6. After downloading the spreadsheet, provide the login and enter the rate details.
7. Click Submit to save and process the rates.
Note: The Record Status column indicates that the record is exported to the interface table.

To associate currency rate type to enterprise:


1. Sign in to the application in the implementor role such as APP_IMPL_CONSULTANT.
2. From the Navigator>Setup and Maintenance> Implementation project task list, search for the Manage
Enterprise HCM Information task.
3. Click the Go to Task icon.
4. In the Currency Support Information region, change the Transaction Processing Conversion Rate Type.
The enterprise changes are as of effective start date.

Note: If you don't specify the conversion rate type at the enterprise level, then the Payroll process uses the default
conversion rate type, Corporate.

5. Click Done.

Hiring an Employee and Running Payroll for Saudi: Worked Example


In this section we will go through the process of hiring a Saudi employee and running a payroll. More information
on the hire task for Saudi can be found in Oracle_Fusion_HRMS_for_SA-HR_Setup_White_Paper

Hire an Employee
To perform tasks related to person and employee management, you would typically sign- in to the application
using a role connected to a user, such as Human Resource Specialist:
The new hire process is the first task in the workforce lifecycle.
To hire an employee:
1. Select New Person under Workforce Management in the Navigator:

2. In the task list on the left, select Hire an Employee:

3. On the Identification page, provide the required information:


4. On the Person Information page, provide the required information:

5. On the Employment Information page, provide the required information:


Note: The employee is connected to the newly created Payroll Definition.
Fixed Terms Contracts
When hiring an employee with a fixed term contract you must enter the duration of the contract to be used in the
gratuity calculation, if gratuity is applicable.

Assign Additional Information


Now that the employee has been hired a set of data needs to be assigned to the employee in order to be processed
and paid.
Basic information to be assigned is:
Remuneration Information
Personal Payment Method

Remuneration

Remuneration to the employee can be assigned either through Salary Basis and Compensation (that will
automatically generate element entries or directly creating element entries).
In the example below, you enter remuneration using the setup for Salary Basis and Compensation.

Adding a Salary

1. Sign in to the Oracle Fusion application using a role that has the profile of a Human Resource Specialist
(HR_SPEC_ALL).
2. Select Manage Salary in the Person Management work area:

3. Click Create, then complete the fields on the Add Salary window:

4. On the Manage Salary page, select the previously created Salary Basis and enter a Salary Amount, such as
2500 SAR per month:
Note: Selectable salary basis are limited to the ones defined for the LDG that is assigned to the payroll statutory
unit connected to the legal employer of the employee.
When you save this record, an element entry with the specified start and end dates is automatically generated. You
can view the entry on the Manage Elements Entries page:

Note: The salary basis has as annualized value of the compensation.

Adding Compensation

1. Select Manage Compensation in the Person Management work area:


2. On the Manage Compensation page, click Award Compensation:

3. On the Award Compensation window, select the previously created compensation plan and enter the
compensation amount, such as 1500 SA as standard earnings:

When you save this record, an element entry with the specified start and end dates is automatically generated. You
can view the entry on the Manage Element Entries page:

Personal Payment Method

Once banks and branches have been loaded in the system and a payroll definition has been assigned to the
employee, you can add payment methods to the employee record.
To assign personal payment methods:
1. Select the Manage Personal Payment Methods task in the Payroll Distribution work area:
2. Search for and select the employee.
3. On the Manage Personal Payment Methods page, click Create:

4. On the Personal Payment Method page, select the Organization Payment Method for this employee:

Note: If the payment type is EFT, you must add a bank account and provide banking details
Note: An employee can have multiple payment methods. Use the Payment Amount Type and Percentage
fields to manage distribution across different payment methods.

Calculation Cards

For payroll to be processed for a Saudi employee, the Employee GOSI Calculation card must be present. A Social
Insurance calculation card is automatically created, however you may wish to review and amend the details.
To view, edit and create calculation cards:
1. Select the Manage Calculation Cards task in the Payroll Calculation work area:

2. Select the employee and verify that Employee GOSI Details card is created:

3. Review the default values that have been assigned to the card and, if required, edit the data:
Note: If the card was automatically created as part of the new hire process, the value for Citizenship is derived
from Person Information and defaulted from the citizenship field in the hire page.

Run Payroll and Review Results


Now that the basic information has been entered, it is possible to run payroll and review the related results. This
section describes the minimum data needed to run payroll, further details on the payroll process can be found in
the core guides.

Payroll run
1. Select the Submit a Process or Report task in the Payroll Calculation work area.
2. Select the LDG for which the payroll is to be calculated and flow pattern Calculate Payroll:

3. Enter the parameters to run the report:


Payroll Flow: Identifier for the process that is being run. You can enter a value each time the process is
executed. You can choose any format to describe the payroll flow.
Payroll: Payroll definition for which payroll is being run.
Payroll Period: Period for which payroll is calculated. For Saudi, the period is always monthly.
Run type: Optional.
4. Click Next
Specify the flow interaction range and schedule the process date and time if required. Review the details before
you submit the process.
5. Click Submit.
Verify the process completion and view the generated report.
Note: A message appears to verify the payroll flow. If the process is complete, you can view the report.

Review Payroll Results

You can review the payroll results once the process is completed successfully:

Payroll results can be reviewed for the person:


1. Select the Submit a Process or Report task in the Payroll Calculation work area.
2. Filter the results using the appropriate parameters such as for example the Payroll Name (Payroll
Definition):
3. Select the desired row and review the results using SOE:

Mandatory Post-Payroll processes


Once payroll has been executed a set of mandatory post payroll processes:
Calculate Prepayments
Archive Periodic Payroll Results
These are needed as prerequisites to run the set of post payroll processes such as payments, payslip and regulatory
reporting.

Calculate Prepayments
To run the calculate prepayments process:
1. Select the Submit a Process or Report task in the Payment Distribution work area
2. Select the LDG for which the process is being run and flow pattern Calculate Prepayments:
3. Enter the parameters to run the report:

Payroll Flow: Identifier for the process that is being run. You can enter a value each time the process
is executed. You can choose any format to describe the payroll flow.
Payroll: Payroll definition for which payroll is to be run.
Process Start Date: Start date of the process for which the prepayment is run.
Process End Date: Start date of the process for which the prepayment is run.
6. Click Next
Specify the flow interaction range and schedule the process date and time if required. Review the details before
you submit the process.
7. Click Submit.
Verify the process completion and view the generated report.
Note: A message appears to verify the payroll flow. If the process is complete, you can view the report.

Review the results at the person level:


Archive Periodic Payroll Results
To run the calculate prepayments process:
1. Select the Submit a Process or Report task in the Payment Distribution work area
2. Select the LDG for which the process is to be run and flow pattern Archive Periodic Payroll Results:

3. Enter the parameters to be used to run the report:


Payroll Flow: Identifier for the process that is being run. You can enter a value each time the process is
executed. You can choose any format to describe the payroll flow.
Payroll: Payroll definition for which payroll is to be run.
Process Start Date: Start date of the process for which the prepayment is run.
Process End Date: Start date of the process for which the prepayment is run.
4. Click Next
Specify the flow interaction range and schedule the process date and time if required. Review the details before
you submit the process.
5. Click Submit.
Verify the process completion and view the generated report.
Note: A message appears to verify the payroll flow. If the process is complete, you can view the report.:

Review the results at the person level:


Payments Processing and Payslip
Once payroll has been executed a set of post-payroll processes need to be accomplished. Two basic post-payroll
processes are:
Payments processing
Payslip
This section describes:
What has been predefined by Saudi localization to meet the Saudi specific business requirements.
The process to generate the report outputs.
A sample output of the reports.

Payments Processing
Global payroll provides a global process that generates .XML file containing data generated by payroll that is
relevant for payments processing.
The Saudi localization has predefined an e-text template in Oracle Business Intelligence Publisher which generates
an EFT file from the XML. The EFT file has the structure prescribed for Saudi.
To generate the EFT file, no setup is required in the implementation phase.

Report Execution
1. Select the Submit a Process or Report task in the Payment Distribution work area
2. Select the LDG for which the process is to be run and flow pattern Make EFT Payments:
3. Enter the parameters to be used to run the report:

Payroll Flow: Identifier for the process that is being run. You can enter a value each time the process is
executed. You can choose any format to describe the payroll flow.
Payroll: Payroll definition for which payroll is to be run.
Process Start Date: Start date of the process for which the prepayment is run.
Process End Date: Start date of the process for which the prepayment is run.
Organization Payment Method: Process the employees with the selected organization payment
method.
4. Click Next
Specify the flow interaction range and schedule the process date and time if required. Review the details before
you submit the process.
5. Click Submit.
Verify the process completion and view the generated report.
Note: A message appears to verify the payroll flow. If the process is complete, you can view the report:
View the results:

Select the generated file and view the output:

Note: Once payment process is executed for a person for a specific period, the person will not be selected if the
process is rerun. To rerun the payment for an already processed person, the whole execution needs to be rolled
back.

Generate Cheque Payments

The global Generate Cheque Payments process generates an XML output. This XML output will contain the data
that is to be printed on the cheque template.
Saudi localization has predefined a Rich Text Format (RTF) template in BIP that generates a printout from the
XML. The Generate Cheque Payments report has a predefined structure for Saudi and consists of two sections:
The first section will contain the following information:
Bank Name
Branch Name
Account Name
Account Number
Employee Name
Cheque Number
Cheque Date
Net pay in numbers and letters.
The second section contains:
Cheque Number
Cheque Date
Payroll Relationship Number
Employee Name
Employee Organization Name
Job Title
List of earnings elements and amounts
List of deductions elements and amount
Total amount to be paid
The third section contains:
Accrual Plan
Absence Days
Annual Leave Balance
Note: All earnings with classification Standard Earnings and Supplemental Earnings templates are displayed under
Earning region, and all the deductions with classifications Social Insurance Deductions, Pre-Statutory Deductions,
Voluntary and Involuntary deductions are displayed under deductions region.
To generate the cheque payments, no set up is required in the implementation phase.
Report Execution
1. Select the Submit a Process or Report task in the Payment Distribution work area
2. Select the LDG for which the process is to be run and flow pattern Generate Check Payments:

3. Enter the parameters to run the report:


Payroll Flow: Identifier for the process that is being run. You can enter a value each time the process is
executed. You can choose any format to describe the payroll flow.
Payroll: Payroll definition for which payroll is being run.
Process Start Date: Start date of the process for which the prepayment is run.
Process End Date: Start date of the process for which the prepayment is run.
Organization Payment Method: Process the employees with the selected Organization Payment
Method OPM.
Start Check Number: This is not applicable to Saudi. You can enter any value here.
4. Click Next
Specify the flow interaction range and schedule the process date and time if required. Review the details before
you submit the process.
5. Click Submit.
Verify the process completion and view the generated report.
Note: A message appears to verify the payroll flow. If the process is complete, you can view the report.
Select the generated file and view the output:

Payslip
You can generate a payslip for each payment made for an employee for a given pay period, after successfully
completing the Event Archive for Payroll and Generate Cheque Payments or Direct Deposit processes.
Information such as Employee Details, Payroll Information, Earnings, and Payment Methods are displayed in a
payslip, as read-only.
The payslip consists of the following regions:
Employee Details
Payroll Information
Summary of Payments
Earnings
Deductions
Payment Information

Payslip Regions

This section describes in detail the content of each region and what you can set up in the implementation phase.
Employee Details
This region displays personal details of the Employee.
This is predefined and the following details are displayed in this region:
Full Name
Alternate Name
Employee Number
Civil Identifier
Nationality
Organization
Job
Position
Grade
Location
GOSI Reference Salary

Payroll Process Information


This region displays the details of the payroll that has been processed for the employee.
This is predefined and the following details are displayed in this region:
Period Type
Period Start Date
Period End Date
Payment Date
Basic salary
No setup can be done on this region in implementation phase.
Summary of Payments
This region displays the payment summary derived from the payroll run.
As by predefined setup set the following details are displayed in this region:
Total Earnings
Total Deductions
Total Pay: net pay value - difference between the total earnings value and the total deductions.
No setup can be done on this region in implementation phase.
Earnings
This region contains all the elements paid to the employee.
Elements having the following primary classifications are considered to be payments:
Standard Earnings
Direct Payments

For each element, whose calculation value is different from zero, amount and description are printed in the payslip.
Any elements, created at implementation phase, and having the above primary classifications are included in this
region.
Deductions
This region contains all the employee deductions.
Elements which have the following primary classifications are considered to be deductions:
Involuntary Deductions
Voluntary Deductions
Pre- Social Insurance Deductions
Social Insurance
For each element, whose calculation value is not zero, the amount and description are printed in the payslip.
Any element, created at implementation phase, and having the above primary classifications is included in this
region.

Payment Information
This region contains details about the payment method and bank details for the employee to whom the payment
has been made.
This is predefined and the following details are displayed in this region:
Payment Method
Bank Name
Bank Branch
Account Name/Cheque Number
Amount

No setup can be done on this region in implementation phase.

Report Execution
1. Select the Submit a Process or Report task in the Payment Distribution work area.
2. Select LDG for which the process is to be run and flow pattern Generate Payslips:
3. Enter the parameters used to run the report:

Payroll Flow: Identifier for the process that is being run. You can enter a value each time the process is
executed. You can choose any format to describe the payroll flow.
Payroll: Payroll definition for which payroll is to be run.
Process Start Date: Start date of the process for which the prepayment is run.
Process End Date: Start date of the process for which the prepayment is run.

4. Click Next
Specify the flow interaction range and schedule the process date and time if required. Review the details before
you submit the process.
5. Click Submit.
Verify the process completion and view the generated report.
Note: A message appears to verify the payroll flow. If the process is complete, you can view the report.

Review the report output in Oracle Business Intelligence Publisher:


6. Navigate to Person Gallery
7. Search the person :

8. Click View Payslip :


9. Click View Payslip for the selected row :
Monthly Reports
A set of reports to be executed after payroll processing have been predefined by Saudi localization:
GOSI Form 3
GOSI Form 4
GOSI Form 5

This section of the document provides additional detail on these reports.

GOSI Form 3
The GOSI Form 3 is a mandatory report required from employers in Saudi. This form should be completed by the
employer for each worker in his service and under his sponsorship. The form is presented to GOSI along with the
worker's birth document, if the worker is not registered with GOSI. The employer also completes the form for any
worker who leaves his service, to notify the GOSI of such movement. This report is a monthly report. The report
is distributed to the GOSI office to which the employer is registered. The report is printed per employee.
This report contains the following blocks of information:
Employer Information
Employee Personal Information
Employee Employment Information
Employee Termination Information
The setup for retrieving the information is predefined.
You can find the content for the setup for this report in the section that contains employee compensation
information. Elements that contribute to each information block are defined by the element classification.
The mapping between fields in the report and element classifications or balances is documented in the SA Reports
Mapping.xls in MOS.
Elements created during the implementation phase with classifications that are mapped to report fields, contribute
to the values reported in those fields.

Report Execution
1. Select the Submit a Process or Report task in the Regulatory and Tax Reporting work area
2. Select the LDG for which the process is to be run and flow pattern Run GOSI Form 3:

3. Enter the parameters to run the report


Payroll Flow: Identifier for the process that is being run. You can enter a value each time the process is
executed. You can choose any format to describe the payroll flow.
Payroll Statutory Unit: Payroll Statutory Unit for which the report is run.
Payroll Relationship Number: Payroll Relationship Number for which the report is run.
Form Type: GOSI Form Type for which the report is run.
Effective Date: Date for which the report is run.

4. Click Next
Specify the flow interaction range and schedule the process date and time if required. Review the details before
you submit the process.
5. Click Submit.
Verify the process completion and view the generated report.
Note: A message appears to verify the payroll flow. If the process is complete, you can view the report:
GOSI Form 4
The GOSI Form 4 report is a mandatory report required from employers in Saudi. This report is a monthly report
which lists the Saudi and non Saudi joiners and leavers along with their monthly contributions. The report is
distributed to the GOSI office to which the employer is registered.
This report contains the following blocks of information:
Employer Information
New hires Information
Terminations Information
Monthly Contributions Information
Setup for retrieving this report is predefined.
You can find the content for the setup for this report in the section that contains employee compensation
information. Elements that contribute to each information block are defined by the element classification. The
details of the mappings between fields in the compensation section of the report and element classifications are
documented in the SA Reports Mapping.xls on My Oracle Support (MOS).
Elements created at the implementation phase with classifications that are mapped to report fields will contribute
to the values reported in those fields.

Report Execution
1. Select the Submit a Process or Report task in the Regulatory and Tax Reporting work area
2. Select the LDG for which the process is to be run and flow pattern Run GOSI Form 4:

3. Enter parameters to run the report;

Payroll Flow: Identifier for the process that is being run. You can enter a value each time the process is
executed. You can choose any format to describe the payroll flow.
Payroll Statutory Unit: Payroll Statutory Unit for which the report is run.
Month: Month for which the report is run.
Year: Year for which the report is run.
4. Click Next
Specify the flow interaction range and schedule the process date and time if required. Review the details before
you submit the process.
5. Click Submit.
Verify the process completion and view the generated report.
Note: A message appears to verify the payroll flow. If the process is complete, you can view the report:
GOSI Form 5
The GOSI Form 5 report is a mandatory report required from employers in Saudi. This report is a monthly report.
The report is distributed to the GOSI office to which the employer is registered. On each page the report displays
10 joiner and 10 leavers.
This report contains the following blocks of information:
Employer Information
New hires Information
Terminations Information
Monthly Contributions Information
Setup for retrieving this report is predefined.
You can find the content for the setup for this report in the section that contains employee compensation
information. Elements that contribute to each information block are defined by the element classification. The
details of the mappings between fields in the compensation section of the report and element classifications are
documented in the SA Reports Mapping.xls on My Oracle Support (MOS).
Elements created at the implementation phase with classifications that are mapped to report fields will contribute
to the values reported in those fields.

Report Execution
1. Select the Submit a Process or Report task in the Regulatory and Tax Reporting work area
2. Select the LDG for which the process is to be run and flow pattern Run GOSI Form 5:

3. Enter parameters to run the report;

Payroll Flow: Identifier for the process that is being run. You can enter a value each time the process is
executed. You can choose any format to describe the payroll flow.
Payroll Statutory Unit: Payroll Statutory Unit for which the report is run.
Month: Month for which the report is run.
Year: Year for which the report is run.
4. Click Next
Specify the flow interaction range and schedule the process date and time if required. Review the details before
you submit the process.
5. Click Submit.
Verify the process completion and view the generated report.
Note: A message appears to verify the payroll flow. If the process is complete, you can view the report:
Saudi IPE Report
The Saudi IPE Report is a statutory report that is generated once a year from the employers in Saudi Arabia. The
report lists GCC employees as of January every year. The report includes GOSI Reference Earnings for the current
year and 8 earlier years for those employees listed in the report.

Report Execution
1. Select the Submit a Process or Report task in the Regulatory and Tax Reporting work area
2. Select the LDG for which the process is to be run and flow pattern Run Saudi IPE Report:

3. Enter parameters to run the report:

Payroll Flow: Identifier for the process that is being run. You can enter a value each time the
process is executed. You can choose any format to describe the payroll flow.
Payroll Statutory Unit: Payroll Statutory Unit for which the report is run.
Year: Year for which the report is run.

4. Click Next
Specify the flow interaction range and schedule the process date and time if required. Review the
details before you submit the process.

5. Click Submit.
Verify the process completion and view the generated report.
Note: A message appears to verify the payroll flow. If the process is complete, you can view the report.

View the report results


Saudi IPE Consolidated Report
Saudi IPE Consolidate Report is a part of the GCC IPE Consolidate Report for Saudi Localizaton.The GCC IPE
Consolidated Report is a monthly Payroll report that is to be used across all Gulf Cooperation Council (GCC)
countries, consolidating a set of information relating to new hires and terminations in a given calendar month
period for citizens of the GCC, as required by the Social Insurance Offices across those GCC countries.

Report Execution
1. Select the Submit a Process or Report task in the Regulatory and Tax Reporting work area
2. Select the LDG for which the process is to be run and flow pattern Run Saudi IPE Consolidated
Report:

3. Enter parameters to run the report:


Payroll Flow: Identifier for the process that is being run. You can enter a value each time the
process is executed. You can choose any format to describe the payroll flow.
Payroll Statutory Unit: Payroll Statutory Unit for which the report is run.
Month: Month for which the report is run.
Year: Year for which the report is run.

4. Click Next
Specify the flow interaction range and schedule the process date and time if required. Review the
details before you submit the process.

5. Click Submit.
Verify the process completion and view the generated report.

Note: A message appears to verify the payroll flow. If the process is complete, you can view the report.

Verify report results.


Saudi Wage Protection System Payment Output File Report

Saudi Wage Protection Payment Output file is a statutory report that an employer needs to submit to a Wage
Protection agent at the end of each month. The report details information about the wages paid to individual
employees. All file contents will be in ASCII with record formats as comma separated values (CSV).

Report Prerequisites
The following process must be completed for the payroll period you are running the report for:

1. Payroll Run
2. Pre-payments
3. Archiver

Report Execution
1. Select the Submit a Process or Report task in the Regulatory and Tax Reporting work area.
2. Select the LDG for which the process is to be run and flow pattern Run Saudi WPS Payment Output
File Report.

3. Enter parameters to run the report:


o Payroll Flow: Identifier for the process that is being run. You can enter a value each time the
process is executed. You can choose any format to describe the payroll flow.

o Payroll Statutory Unit: PSU for which the report is run.

o Month: Month for which the report is run.

o Year: Year for which the report is run.

o File Reference: This field should be used for the establishments reference for the full message.
The reference used must be unique for the establishment, i.e., the same reference must not be
used in more than one WPS payment message file regardless of the date of sending. A duplicate
file reference will cause the entire WPS payment message file to be rejected by the
establishments bank.

4. Click Next.
5. Specify the flow interaction range and schedule the process date and time, if required. Review the details
before you submit the process.

6. Click Submit.
7. Verify the process completion and view the generated report.

Note: A message appears to verify the payroll flow. If the process is complete, you can view the report.

8. Verify report results.


Saudi Disability Report
Saudi Disability Report lists the disability details for all the currently employed disabled workers as of a given
effective date.

Report Execution
1. Select the Submit a Process or Report task in the Regulatory and Tax Reporting work area.
2. Select the LDG for which the process is to be run and flow pattern Run Disabled Workers Report.

3. Enter parameters to run the report:


o Payroll Flow: Identifier for the process that is being run. You can enter a value each time the
process is executed. You can choose any format to describe the payroll flow.

o Legal Employer: Legal employer for which the report is run.

o Disability Category: Disability category for which the report is run.

o Effective Date: Date for which the report is run.


4. Click Next.
5. Specify the flow interaction range and schedule the process date and time, if required. Review the details
before you submit the process.

6. Click Submit.
7. Verify the process completion and view the generated report.

Note: A message appears to verify the payroll flow. If the process is complete, you can view the report.

8. Verify report results.


Global Reports
A set of global reports can be used to validate data included in Saudi statutory reports. This section will contain
additional information on these reports.
Reports that can be used to validate data included in Saudi statutory reports are:
Statutory Deductions Register
Payroll Activity Report
Gross-to-Net Report
Payroll Balance Report
Element Results Report
Payroll Register Report

Statutory Deductions Register


The Statutory Deduction Register lists the different deductions that localizations consider as statutory. More in
detail it will display balances connected to the following balance groups:
GLB_TAX_DEDUCTIONS_BALANCE_GROUP
GLB_INVOLUNTARY_DEDUCTIONS_BALANCE_GROUP
GLB_SOCIAL_INSURANCE_DEDUCTIONS_BALANCE_GROUP
The connection between balance groups and defined balances is explained in balance groups and attributes section
of the document.
This report may be used, in conjunction with SOE, Balance Views and various payroll reports for diagnostic
purposes, in order to verify the amounts deducted and submitted for each PSU.
The Statutory Deduction Register provides the output in summary format where totals for each TRU are displayed
with grand totals for each PSU. It also provides information in a detail format where deductions are listed against
each employee categorized by PSU, TRU and element classification).
The Statutory Deduction Register shows the amount on both Period-to-Date and Year-to-Date basis.

Report Execution
1. Select the Submit a Process or Report task in the Regulatory and Tax Reporting work area
2. Select the LDG for which the process is to be run and flow pattern Run Statutory Deductions
Register:

3. Enter parameters to run the report:


Payroll Flow: Identifier for the process that is being run. You can enter a value each time the process is
executed. You can choose any format to describe the payroll flow.
Payroll: Payroll definition for which payroll is to be run.
Process Start Date: Start date of the process for which the prepayment is run.
Process End Date: Start date of the process for which the prepayment is run.
Scope: Select either Summary or Detailed.
Consolidation Group: Select the name of the consolidation group.
Payroll Statutory Unit: Limits the output to a specific PSU.
Tax Reporting Unit: Limits the output to a specific TRU.
Balance Category: Limits the output to a specific Balance Category, for example Standard Earnings.
Payroll Relationship Group: Limits the output to a predefined group of Payroll Relationships.
Person: Limits the output to a selected person.
Hide Records with Zero Value: Select Yes if you want to limit the report to the non-zero balances.
Process Configuration Group: Select a Process Configuration Group if you want a log file generated for
the report.
4. Click Next
Specify the flow interaction range and schedule the process date and time if required. Review the details before
you submit the process.
5. Click Submit.
Verify the process completion and view the generated report.
Note: A message appears to verify the payroll flow. If the process is complete, you can view the report.:
View report results:
Payroll Activity Report
The Payroll Activity Report shows the processing results for payroll runs, quick pays, reversals, and balance
adjustments for a given date range. This is an ad-hoc report which can be run at any time and is not dependent on
any other processes such as pre-payments. This report can be used for payroll verification, validation, and auditing
purposes.
There are two options when running the report - Summary and Detail. The Summary version shows the
aggregated values for PSU and TRU combinations while the Detail report shows the results within PSU and TRU
combinations for individual employees. The Summary version is restricted to payroll runs and shows the totals for
all the people that were reported under that same payroll run in the Detail version.
The report shows Relationship Run balance dimension.
More in detail it will display balances connected to the following balance groups:
GLB_EMPLOYER_CHARGES_BALANCE_GROUP (Balance Category: Employer Charges)
GLB_PAYROLL_RELATIONSHIP_OTHER_DEDUCTIONS_BALANCE_GROUP
GLB_PAYROLL_RELATIONSHIP_PRE_TAX_DEDUCTIONS_BALANCE_GROUP (Balance
Category: Pre-Statutory Deductions)
GLB_PAYROLL_RELATIONSHIP_TAX_DEDUCTIONS_BALANCE_GROUP (Balance Category:
Tax Deductions)
GLB_PAYROLL_RELATIONSHIP_EARNINGS_BALANCE_GROUP
GLB_HOURS_BALANCE_GROUP (Balance Category: Hours)
GLB_DIRECT_PAYMENTS_BALANCE_GROUP (Balance Category: Direct Payments)
GLB_PAYROLL_RELATIONSHIP_BALANCE_CLASSIFICATION_BALANCE_GROUP

Report Execution
1. Select the Submit a Process or Report task in the Payment Distribution work area.
2. Select the LDG for which the process is to be run and flow pattern Run Payroll Activity Report:
3. Enter parameters to run the report:

Payroll Flow: Identifier for the process that is being run. You can enter a value each time the process is
executed. You can choose any format to describe the payroll flow.
Scope: Select either Summary or Detailed.
Payroll: Payroll definition for which payroll is to be run.
Process Start Date: Start date of the process for which the prepayment is run.
Process End Date: Start date of the process for which the prepayment is run.
Consolidation Group: Select the name of the consolidation group.
Payroll Statutory Unit: Limits the output to a specific PSU.
Tax Reporting Unit: Limits the output to a specific TRU.
Payroll Relationship Group: Limits the output to a predefined group of Payroll Relationships.
Person: Limits the output to a selected person.
Person Page Break: Select Yes if you want a Page Break after each Persons report.
Hide Records with Zero Value: Select Yes if you want to limit the report to the non-zero balances.
Process Configuration Group: Select a Process Configuration Group if you want a log file generated for
the report.
5. Click Next
Specify the flow interaction range and schedule the process date and time if required. Review the details before
you submit the process.
6. Click Submit.
Verify the process completion and view the generated report.
Note: A message appears to verify the payroll flow. If the process is complete, you can view the report:

View report results:


Gross-to-Net Report
The Gross-to-Net Report is a pre-archive report that can be used as an audit report as part of the
payroll process. The report will show the totals for the results calculated from payroll runs,
Quickpay runs and reversals by earnings, deductions, and any other element of pay. You can run the
process separately or as a part of the payroll flow.
The prerequisites for running this report are:

Ensure that the Calculate Payroll process must be run and complete for the payroll period.
The balances should have dimension Group Tax Unit Run attached to it through Manage
Balance Definitions.
Every earnings or deduction balance relating to hours worked has to have the Group Tax
Unit Run dimension attached to it to ensure that Hours on the report is populated correctly.

This report includes balances that belong to the following Balance Groups
GLB_GTN_EARNINGS
GLB_GTN_DIRECT_PAYMENTS
GLB_GTN_EMPLOYER_CHARGES_GROUP_BALANCES
GLB_GTN_DEDUCTIONS
Report Execution
1. In the Payroll Checklist work area, from the Tasks pane, select the Submit a Process or Report task.
2. Specify the LDG.
3. Search for and select the Run Gross-to-Net Report flow pattern.
4. Click Next to enter the process parameters.

Specify the parameters as follows:


Payroll Flow: Identifier for the process that is being run. You can enter a value each time the process is
executed. You can choose any format to describe the payroll flow.
Payroll: Payroll definition for which payroll is to be run.
Process Start Date: Start date of the process for which the prepayment is run.
Process End Date: Start date of the process for which the prepayment is run.
Consolidation Group: Select the name of the consolidation group.
Payroll Statutory Unit: Limits the output to a specific PSU.
Tax Reporting Unit: Limits the output to a specific TRU.
Process Configuration Group: Select a Process Configuration Group if you want a log file generated for
the report.
5. Click Next
Specify the flow interaction range and schedule the process date and time if required. Review the details before
you submit the process.
6. Click Submit.
Verify the process completion and view the generated report.
Note: A message appears to verify the payroll flow. If the process is complete, you can view the report.
Payroll Balance Report
This report uses balance groups that facilitate the localization country to control and show the
balance amounts in the report. The report can be run independently or as part of a payroll flow.
Prerequisites:

Ensure that the Calculate Payroll process must be run and complete for the payroll period.

This report includes balances that belong to the following Balance Groups
GLB_SOE_EARNINGS_BALANCE_GROUP
GLB_DEDUCTIONS_BALANCE_GROUP
GLB_DIRECT_PAYMENTS_BALANCE_GROUP
Report Execution
1. In the Payroll Checklist work area, from the Tasks pane, select the Submit a Process or Report task.
2. Specify the LDG.
3. Search for and select the Run Payroll Balance Report flow pattern.
4. Click Next to enter the process parameters.

Specify the parameters as follows:

6. Payroll Flow: Identifier for the process that is being run. You can enter a value each time the process
is executed. You can choose any format to describe the payroll flow.
Process Start Date: Start date of the process for which the prepayment is run.
Process End Date: Start date of the process for which the prepayment is run.
Payroll: Payroll definition for which payroll is to be run.
Consolidation Group: Select the name of the consolidation group.
Payroll Statutory Unit: Limits the output to a specific PSU.
Tax Reporting Unit: Limits the output to a specific TRU.
Balance Category: Limits the output to a specific Balance category
Location: Limits the output to a specific Location.
Payroll Relationship Group: Limits the output to a predefined group of Payroll Relationships.
Person: Limits the output to a selected person.
Process Configuration Group: Select a Process Configuration Group if you want a log file generated for
the report.
5. Click Next
Specify the flow interaction range and schedule the process date and time if required. Review the details before
you submit the process.
6. Click Submit.
Verify the process completion and view the generated report.
Note: A message appears to verify the payroll flow. If the process is complete, you can view the report..
Element Results Report
This report uses balance groups to allow different localizations to control which balance amounts
are shown. The report can be run independently or as part of a payroll flow.
Prequisites:

Ensure that the Calculate Payroll process must is run and complete for the payroll period.

This report includes balances that belong to the following Balance Groups
GLB_DEDUCTIONS_BALANCE_GROUP
GLB_SOE_EARNINGS_BALANCE_GROUP
GLB_DIRECT_PAYMENTS_BALANCE_GROUP
Report Execution
1. In the Payroll Checklist work area, from the Tasks pane, select the Submit a Process or Report task.
2. Specify the LDG.
3. Search for and select the Run Element Results Report flow pattern.
4. Click Next to enter the parameters.
Specify the parameters as follows:

Payroll Flow: Identifier for the process that is being run. You can enter a value each time the process is
executed. You can choose any format to describe the payroll flow.
Payroll: Payroll definition for which payroll is to be run.
Process Start Date: Start date of the process for which the prepayment is run.
Process End Date: Start date of the process for which the prepayment is run.
Payroll Statutory Unit: Limits the output to a specific PSU.
Tax Reporting Unit: Limits the output to a specific TRU.
Balance: Limits the output to a specific Balance.
Balance Category: Limits the output to a specific Balance category.
Person: Limits the output to a selected person.
Process Configuration Group: Select a Process Configuration Group if you want a log file generated for
the report
5. Click Next
Specify the flow interaction range and schedule the process date and time if required. Review the details before
you submit the process.
6. Click Submit.
Verify the process completion and view the generated report.
Note: A message appears to verify the payroll flow. If the process is complete, you can view the report..
Payroll Register Report

You can generate the Payroll Register Report separately or as a part of the payroll flow. You can
choose the summary or detail mode when you specify the report parameters.

The Payroll Register Summary report displays the total amount of hours, earnings and
deductions categorized by Balance Category for each Payroll Statutory Unit and Tax Reporting
Unit. The Payroll Register Detail report displays the complete payroll run details categorized by
Balance Category for each employee. This can be used for payroll verification, validation and
auditing purposes
Prerequisites

Ensure that the following processes are run and complete for the payroll period:

Calculate Payroll process

Calculate Prepayments process

Archive Periodic Payroll Results process

Payroll Register Detail Report will display balances connected to the following balance groups:
GLB_PAYROLL_ASSIGNMENT_EARNINGS_BALANCE_GROUP
GLB_PAYROLL_ASSIGNMENT_OTHER_DEDUCTIONS_BALANCE_GROUP
GLB_PAYROLL_ASSIGNMENT_PRE_TAX_DEDUCTIONS_BALANCE_GROUP
GLB_PAYROLL_ASSIGNMENT_TAX_DEDUCTIONS_BALANCE_GROUP
GLB_PAYROLL_ASSIGNMENT_BALANCE_CLASSIFICATION_BALANCE_GROUP
GLB_PAYROLL_TERMS_EARNINGS_BALANCE_GROUP
GLB_PAYROLL_TERMS_OTHER_DEDUCTIONS_BALANCE_GROUP
GLB_PAYROLL_TERMS_TAX_DEDUCTIONS_BALANCE_GROUP
GLB_PAYROLL_TERM_BALANCE_PRE_TAX_DEDUCTIONS_BALANCE_GROUP
GLB_PAYROLL_RELATIONSHIP_BALANCE_CLASSIFICATION_BALANCE_GROUP
GLB_PAYROLL_RELATIONSHIP_EARNINGS_BALANCE_GROUP
GLB_PAYROLL_RELATIONSHIP_OTHER_DEDUCTIONS_BALANCE_GROUP
GLB_PAYROLL_RELATIONSHIP_PRE_TAX_DEDUCTIONS_BALANCE_GROUP
GLB_PAYROLL_RELATIONSHIP_TAX_DEDUCTIONS_BALANCE_GROUP

Report Execution

1. In the Payroll Checklist work area, from the Tasks pane, select the Submit a Process or
Report task.
2. Specify the LDG.
3. Search for and select the Run Payroll Register Report flow pattern.

Specify the parameters as follows:


Payroll Flow: Identifier for the process that is being run. You can enter a value each time the process is
executed. You can choose any format to describe the payroll flow.
Scope: Select either Summary or Detailed.
Payroll: Payroll definition for which payroll is to be run.
Process Start Date: Start date of the process for which the prepayment is run.
Process End Date: Start date of the process for which the prepayment is run.
Payroll Statutory Unit: Limits the output to a specific PSU.
Tax Reporting Unit: Limits the output to a specific TRU.
Person: Limits the output to a selected person.
Payroll Relationship Group: Limits the output to a predefined group of Payroll Relationships.
Person Page Break: Select Yes if you want a Page Break after each Persons report.
Process Configuration Group: Select a Process Configuration Group if you want a log file generated for
the report.
5. Click Next
Specify the flow interaction range and schedule the process date and time if required. Review the details before
you submit the process.
6. Click Submit.
Verify the process completion and view the generated report.
Note: A message appears to verify the payroll flow. If the process is complete, you can view the report.
Deductions Report
The Deduction Report gives details of payroll deductions for a specified period. The report is broken down by
Employee within Balance Category and produces details on scheduled deductions and arrears processing.

Prerequisites

Ensure that the following processes are run and complete for the payroll period:

Calculate Payroll process

Calculate Prepayments process

Archive Periodic Payroll Results process

Deduction Report displays balances connected to the following balance groups:


GLB_DEDUCTIONS_BALANCE_GROUP: Used in Global Deductions for Deductions Report.
GLB_MISCELLANEOUS_BALANCE_GROUP: Used in Miscellaneous deductions for Deductions Report.

Report Execution

1. In the Payroll Checklist work area, from the Tasks pane, select the Submit a Process or
Report task.
2. Specify the LDG.
3. Search for and select the Run Deduction Report flow pattern.

4. Specify the parameters as follows:

Payroll Flow: Identifier for the process that is being run. You can enter a value each time the process is
executed. You can choose any format to describe the payroll flow.
Process Start Date: Start date of the process for which the prepayment is run.
Process End Date: Start date of the process for which the prepayment is run.
Payroll: Payroll definition for which payroll is to be run.
Consolidation Group: Select the name of the consolidation group.
Payroll Statutory Unit: Limits the output to a specific PSU.
Tax Reporting Unit: Limits the output to a specific TRU.
Deduction Category
Deduction
Location
Process Configuration Group: Select a Process Configuration Group to generate a log file for the
report.
5. Click Next
Specify the flow interaction range and schedule the process date and time if required. Review the details before
you submit the process.
6. Click Submit.
Verify the process completion and view the generated report.
Note: A message appears to verify the payroll flow. If the process is complete, you can view the report.
Payment Register Report
The report is used for the verification, reconciliation, and audit of payment distributions.
You can generate the report in two modes:
Summary Mode: Use it to verify the total amounts paid by payment category, payment type,
status, and payment method.

Note: The reports dont include payments made to third parties. Such payments are listed on
another register.
Detail Mode: Use it to validate payments for each employee, including the payment amount,
bank, and check information.

You can generate the report independently or as a part of the Payroll process.
Prerequisites

Ensure that the following processes are run and complete for the payroll period:

Calculate Payroll process

Calculate Prepayments process

Archive Periodic Payroll Results process

Generate cheque payment (or other payment method)


Report Execution

1. In the Payroll Checklist work area, from the Tasks pane, select the Submit a Process or
Report task.
2. Specify the LDG.
3. Search for and select the Run Payment Register Report flow pattern

4. Specify the parameters as follows:

Payroll Flow: Identifier for the process that is being run. You can enter a value each time the process is
executed. You can choose any format to describe the payroll flow.
Scope: Select either Summary or Detailed.
Process Start Date: Start date of the process for which the prepayment is run.
Process End Date: Start date of the process for which the prepayment is run.
Payroll: Payroll definition for which payroll is to be run.
Payment Process: Specify payment process.
Consolidation Group: Select the name of the consolidation group.
Payroll Statutory Unit: Limits the output to a specific PSU.
Tax Reporting Unit: Limits the output to a specific TRU.
Payroll Relationship Group: Limits the output to a predefined group of Payroll Relationships.
Person: Limits the output to a selected person.
Payment Category: Limits the output to a selected payment category.
Payment Type: Limits the output to a selected payment type.
Payment Method: Limits the output to a selected payment method.
Location: Limits the output to a specific Location
5. Click Next
Specify the flow interaction range and schedule the process date and time if required. Review the details before
you submit the process.
6. Click Submit.
Verify the process completion and view the generated report.
Note: A message appears to verify the payroll flow. If the process is complete, you can view the report.
Balance Exception Report
The Balance Exception report tracks values that vary for the same balance dimension. The variance
indicates overpayments and underpayments. Generate this report immediately after the Payroll
process so that you can track the potential mistakes that are not tracked as errors. This process is
run immediately after the Payroll or QuickPay processing, or before generating the statutory reports,
such as quarterly or annual reports.
View to identify potentially incorrect payments or amounts withheld.
The prerequisites for running this report are:
Payroll Run should be completed for required payroll period.
Balance Exception should be defined.
Balance Exception Report should be defined.
The procedure is specified as follows:

Creating Balance Exception:


1. In the Payroll Calculation work area, from the Tasks pane, Manage Payroll Process Configuration
tasklist, select the Manage Balance Exceptions task and click Create.
2. Select LDG.
3. Define Balance Exception.

Creating Balance Exception Report


1. In the Payroll Calculation work area, from the Tasks pane, Manage Payroll Process Configuration task
list, select the Manage Balance Exceptions and Reports task and click Create.
2. Select LDG.
3. Define Balance Exception Report as shown here.

Report Execution

1. In the Payroll Checklist work area, from the Tasks pane, select the Submit a Process or
Report task.
2. Specify the LDG.
3. Search for and select the Run Balance Exception Report flow pattern
4. Specify the parameters as follows:

Payroll Flow: Identifier for the process that is being run. You can enter a value each time the process is
executed. You can choose any format to describe the payroll flow.
Process Start Date: Start date of the process for which the archiver is run.
Process End Date: Start date of the process for which the archiver is run.
Balance Exception Report: select the balance exception report that is to run.
Payroll: Payroll definition for which payroll is to be run.
Consolidation Group: Select the name of the consolidation group.
Payroll Statutory Unit: Limits the output to a specific PSU.
Tax Reporting Unit: Limits the output to a specific TRU.
Location: Limits the output to a specific Location
Payroll Relationship Group: Limits the output to a predefined group of Payroll Relationships.
5. Click Next
Specify the flow interaction range and schedule the process date and time if required. Review the details before
you submit the process.
6. Click Submit.
Verify the process completion and view the generated report.
Note: A message appears to verify the payroll flow. If the process is complete, you can view the report.
Termination
There are no separate post termination processes for Saudi. Terminated employees are not considered for social
insurance processing in the month of termination unless it is the last day of the month.
Earnings can be paid also after termination. In this case, it is important to check the payroll status of the payee to
be sure that it is included in the payroll run. The possible HR statuses that can be enabled are:
Payroll Eligible - Payee is included in the payroll run.
No Payroll - Payee will not be included in the payroll run.
Process When One Time Element: Payee will only be included in the payroll run if they have a non-
recurring (unprocessed) element entry for the payroll period.
Process When Earning: Payee will only be included in the payroll run if they have an element entry, for
the payroll period, for earning having classifications where Process When Earning option is selected.

In the termination month, gratuity payment is automatically generated, if the employee is eligible. This amount is
added to the employees net pay. Rules for determining the gratuity payment are described gratuity calculation
section.
When a terminated employee is rehired, the employee is treated as a new employee. When the HR user creates a
new Work Term, a check will be made for a Payroll Relationship of the same type and PSU. If one exists, the Last
Standard Earnings Date of the payroll relationship will be validated. If it is greater than the Term start date, the
Work Term will be attached to it. If it is less than the Term start date, a new Payroll Relationship will be generated.
If one does not exist, a new Payroll Relationship will be generated.

Worked Example Terminating an Employee


This section describes termination of an employee and its effect of calculation and reporting.
To terminate a work relationship:
1. Log in with an HR Specialist role (HR_SPEC_ALL).
2. Select Manage Work Relationship in the Person Management work area and select Terminate from
the Actions menu.
3. On the Terminate Work Relationship page, enter the details of the termination, including the termination
reason:
4. Review and Submit

Employee Gratuity Details Calculation Card

The action of termination the employee triggers the automatic creation of an Employee Gratuity Details
calculation card:

The card is created with the calculation component and component details and associations. You can review and
edit the card to enter an override amount for gratuity.
Running Payroll

After verifying that the calculation card is created February 2010 (month when the employee is terminated), payroll
can be run for Payroll Definition ZHRX-SA-V-Monthly Payroll and the following results are generated:

Note that:
Gratuity payment is triggered in line with the amount entered as override.
Social insurance deductions are calculated as zero since we are in the month of termination.
Conclusion
This document focuses on information specific to implementing and using Oracle Fusion HCM in Saudi Arabia.
To read more about these tasks, refer to the documents listed in the Other Information Sources section

Glossary
General Terminology
consolidation group

A grouping of payroll runs within the same time period for which you can schedule reporting, costing, and post-
run processing.

calculation card

A mechanism for capturing values required for calculating payroll deductions at the level of a payroll statutory unit,
tax reporting unit, or payroll relationship. At the payroll relationship level, this is called a personal calculation card.

calculation component

An individual deduction captured on a calculation card. Typically relates to a deduction element for which the
calculation component creates an entry.

flexfield

Grouping of extensible data fields called segments, where each segment is an attribute added to an entity for
capturing additional information.
legal employer

A legal entity that employs people.

legal entity

An entity is identified and given rights and responsibilities under commercial law, through the registration with the
country's appropriate authority.
obligation.

legislative data group

A means of partitioning payroll and related data. At least one legislative data group is required for each country
where an enterprise operates. Each legislative data group is associated with one or more payroll statutory units.

payroll statutory unit

A legal entity registered to report payroll tax and social insurance. A legal employer can also be a payroll statutory
unit, but a payroll statutory unit can represent multiple legal employers.
Oracle Fusion HRMS (SA): Payroll Copyright 2015, Oracle and/or its affiliates. All rights reserved.
Implementation and Functional Considerations
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March 2016
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