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Payroll Processes In Oracle R12 HRMS

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Payroll Processes In Oracle R12 HRMS

Payroll Processes In Oracle R12 HRMS

Payroll refers to the amount paid to employees for services they provided during a certain period of time. Gone are the days, where payroll included only printing of checks and handing out of payment issues. Nowadays, payroll process has been automated to such extent that only professionals and consultants who specialize can resolve such issues. In today’s scenario, every benefit, taxes, insurance coverage, worker’s compensation and funds for pension are mapped into an application.


In Oracle R12 HRMS, we define payroll as a group of employees who share a common payment date and frequency of payroll processing. Payroll contains information about payment methods and consolidation sets. The application uses elements to represent all types of earnings, deductions and benefits. Earnings in your salary may be basic, conveyance and medical allowances, taxable flexible or fringe benefits. Deductions can be voluntary, involuntary or pre-tax. Element classification also includes direct payment, court orders and balance initialization.

The setups in oracle HRMS payroll come up to be that if salary is suppose to be distributed to employees they must be eligible for an element when their assignment details match the link details. We can link each element (mentioned above) to any combination of organization, group, grade, job, position, payroll, location or salary basis. Then comes the process of running payroll.

While running payroll, mistakes may occur. Oracle HRMS has provided us with various functionalities for correcting those mistakes after payment has been made to employees. These functionalities are retry, rollback, reversal.

Retry is done when in your salary the payroll manager may have missed out to add entry values for an element, or any other changes that may not have been added. Here we mark that employee, make the changes and run the payroll.

Rollback is done to delete the entire payroll run as if it had never occurred. The condition is that when 10% salary hike is made for 1000 employees for a month. The increased salary did not get update for them. We rollback the payroll and rerun it.

Reversal, a post-payroll processing methodology, is done to correct any type of payroll information.

By using Oracle HRMS, we can make backdated and advance payments. A payroll manager makes backdated payments in the current payroll period.

For example: An employee is cut short of being paid (suppose Rs. 2000) in the month of April. Now in the month of June, his backdated amount (Rs. 2000) is credited through Retropay by element and following payroll process.

An employee can also be paid in advance for one or more months in his current pay period.

Oracle Payroll in HRMS covers all the above aspects in addition to defining compensation and benefits for employees.

–Priyanka

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