13th June 2013 Sample Setup for Case Scenarios in Oracle Payroll ­ Loan

The aim of this post is to provide sample case study for beginners in Oracle Payroll. This case study will take you
through the real time requirements in payroll for UAE legislation. In further posts we will be dealing with scenarios
related to costing and resolution for issues during payroll support.

Note: All setups are effective 01­Jan­1951

1. Loan Setup

Case:  In  your  organization,  an  employee  is  eligible  to  apply  for  a  loan.  Now  the  administrator  will  determine  the
number  of  installments  required  to  recover  this  loan.  This  loan  is  internal  and  does  not  require  payment  to  be
made to a third party.Let us keep it very simple. Oracle Payroll by default provides elements for Handling Loans.
You may use these or create you own, as I have done for simplicity sake.

Approach: You need a non­recurring element, something that the admin will add in the element entries to say that
in  this  run  the  loan  is  to  disbursed  to  the  employee.  Then  recurring  elements  for  deducting  the  installment  in
subsequent runs until the entire amount is repaid. Also the corresponding balances need to be created. Then we
write the fast formula for processing the loan and validations if any. Define the formula result. Go to the element
entry screen add the loan element and run the quick pay to check our setup.

Element and Balance Setup: Total Compensation>Basic>Element Description
                                             Total Compensation>Basic>Balance
___________________________________________________________________________________
Element Loan Amount
Classification Earnings
Type Non­Recurring
Termination Rule Last Standing Process
Other Options Process in Run
Priority 7552
Input Values Pay Value

Element                                      Loan Repayment
Classification Voluntary Deductions
Type Recurring
Termination Rule Last Standing Process
Once  in  Each
Other Options Process in Run
Period
Priority 7550
Number  ofLoan
Input Values
Installments(Number) Amount(Money)

Element Loan Outstanding
Classification Earnings
Type Non­Recurring
Termination Rule Last Standing Process
Other Options Process in Run Indirect Result
Priority 7561

Outstanding
Input Values
Amount(Money)

Balance Loan
Feeds Loan Repayment(Add)
Element  Entry
Assignment  Inception  to
Dimension Assignment Run Inception  to
Date
Date

___________________________________________________________________________________

Total Compensation>Basic>Write Formula
Fast Formula: Loan Calculation
Type: Oracle Payroll

DEFAULT FOR PAY_PROC_PERIOD_START_DATE IS '1951/01/01 00:00:00' (date)
DEFAULT FOR PAY_PROC_PERIOD_END_DATE IS '4712/12/31 00:00:00' (date)
DEFAULT FOR EMP_HIRE_DATE IS '4712/12/31 00:00:00' (date)
DEFAULT FOR AMOUNT is 0
DEFAULT FOR STOP IS 'NO'
DEFAULT FOR LOAN_OUTSTANDING IS 0
DEFAULT FOR LOAN_INSTALLMENT IS 0
INPUTS ARE LOAN_AMOUNT,NUMBER_OF_INSTALLMENTS
IF LOAN_BALANCE_ASG_ITD = 0 AND PAY_PROC_PERIOD_START_DATE = ENTRY_START_DATE THEN
(
     LOAN_OUTSTANDING = LOAN_AMOUNT
     MSG = 'Loan is disbursed'
     RETURN LOAN_OUTSTANDING,LOAN_AMOUNT,MSG
)

IF LOAN_AMOUNT ­ LOAN_BALANCE_ASG_ITD >0 THEN
     (
        LOAN_INSTALLMENT = LOAN_AMOUNT/NUMBER_OF_INSTALLMENTS
        LOAN_OUTSTANDING = LOAN_AMOUNT ­ LOAN_BALANCE_ASG_ITD ­ LOAN_INSTALLMENT
        IF LOAN_OUTSTANDING > 0 THEN
        (
          MSG = 'Loan Recovery in progress'
         RETURN LOAN_OUTSTANDING,LOAN_INSTALLMENT,MSG
        )
        ELSE
        (
          MSG = 'Loan recovery completed'
          STOP ='YES'
          RETURN LOAN_OUTSTANDING,MSG,STOP
         )
     )

Formula Result: Total Compensation>Basic>Formula Results
[http://4.bp.blogspot.com/­fAIkJUSVK28/Ubmp67svSYI/AAAAAAAASWw/bGVEorSyVPQ/s1600/formula+result.JPG]

[http://1.bp.blogspot.com/­i5NtJYRd1so/Ubmr­VSszHI/AAAAAAAASXA/U79kO7dTgoM/s1600/formula+result+2.JPG]
Now we go to the employee assignment screen and add the entry as shown.Loan Repayment entry for employee
in Feb

Note: This has already been processed, hence the check and end date.

Quick Pay Results: People>Enter and Maintain>
1.Select the employee
2. Click on Assignment
3. Click on Others
 [http://4.bp.blogspot.com/­7UBuvAHe­NY/UbmyYmZaKKI/AAAAAAAASXQ/N_P1Rk6q544/s1600/element+entry.JPG]
4. Click on Quick Pay

[http://4.bp.blogspot.com/­TvFoV4Ab2ls/Ubm_y­MMFLI/AAAAAAAASYo/OVUpdG­MvcQ/s1600/quick+pay.JPG]
February:
[http://3.bp.blogspot.com/­iiPGDt_DKPI/Ubm0N7EpRKI/AAAAAAAASXg/r2kWrP0B8MQ/s1600/feb.JPG]

[http://3.bp.blogspot.com/­XnDKtDmHwsE/Ubm0S74THbI/AAAAAAAASX0/dpi2MVrHm9s/s1600/jul.JPG]

[http://3.bp.blogspot.com/­XnDKtDmHwsE/Ubm0S74THbI/AAAAAAAASX0/dpi2MVrHm9s/s1600/jul.JPG]

[http://1.bp.blogspot.com/­R7vqDuYPY0I/Ubm0S1oGoRI/AAAAAAAASX4/T9_JlP3­_ZU/s1600/jul+result.JPG]

March:
 [http://3.bp.blogspot.com/­uKA6yT5pMBw/Ubm0TDG­MTI/AAAAAAAASX8/Uoc0pFiodyo/s1600/mar+result.JPG]

[http://1.bp.blogspot.com/­2egM0pE65jw/Ubm1AE99INI/AAAAAAAASYU/1384bDAZE­M/s1600/mar.JPG]
July:
 [http://3.bp.blogspot.com/­XnDKtDmHwsE/Ubm0S74THbI/AAAAAAAASYA/hHVWDUu6Glc/s1600/jul.JPG]

[http://1.bp.blogspot.com/­R7vqDuYPY0I/Ubm0S1oGoRI/AAAAAAAASX4/T9_JlP3­_ZU/s1600/jul+result.JPG]
Posted 13th June 2013 by Vasudha and Sreekanth

3   View comments

Jasmin Mezet April 8, 2014 at 7:30 AM
Hi Vasudha and Sreekanth,

Very  good  post.  But  I  was  not  able  to  get  the  results  as  you  did.  First,  I  needed  to  change  the  Loan  Amount
earning element from Recurring to Non­recurring since it will not appear in Formula results if (Earning element) it's
 Recurring. I hope you are still "on­line" so we can discuss this problem?

Regards
Jazzmean
Reply

Replies

Vasudha and Sreekanth May 21, 2014 at 6:32 AM
Hi Jazz,

Sorry for the delayed response. You are right the loan amount earning should be non­recurring. As you
can  see  in  the  first  screenshot  where  loan  disbursed,  the  loan  amount  is  an  indirect  result  and  hence
cannot be a recurring element. I have now corrected the typo.

Please do let me know if you need further information. I hope to be actively available on this blog :)

Regards,
Vasudha and Sreekanth

Reply

Venu R November 10, 2014 at 7:00 AM
This comment has been removed by the author.
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