Please find the very basics of Accounting in Oracle HR and Payroll Module.
Golden Rule of accounting from ORACLE PAYROLL
Dr :- Actual Account
Cr :- Balancing Account
When LD(Labour Distributions) comes into play, “Actual Account in Payroll” is
replaced by “Clearing Account in Payroll”.
Based on above golden rule, for Earning Elements, following account
entry takes place .
The payroll run result value is +ve for “XX_Custom Basic Salary”
Step | Credit | Debit | Element | How to recognise |
Post from Payroll | Balancing Account |
| XX_Custom Basic Salary | Pickup Balancing entries for LD elements when in Credit |
Post from Payroll |
| Clearing Account | XX_Custom Basic Salary | Ignore debit entries for LD elements |
Post from LD | Clearing Account |
| XX_Custom Basic Salary |
|
Post from LD |
| Actual Account | XX_Custom Basic Salary |
|
For Rebate element, following accounting takes place
( golden rule is violated, as the original entries need to be either fully
or partially reversed). The payroll run result value is –ve for Rebate Element
Step | Credit | Debit | Element |
Post from Payroll |
| Balancing Account | NI Employers Rebate |
Post from Payroll | Clearing Account |
| XX_Custom Basic Salary |
Post from LD |
| Clearing Account | XX_Custom Basic Salary |
Post from LD | Actual Account |
| XX_Custom Basic Salary |
Conclusions( Not taking LD into account. These rules apply to costing entries in Payroll.) :-
1. The golden rule applies only when run result values are Positive.
a. If run result value is positive, then
v Credit Balancing Account
v Debit Actual Account
2. The golden rule DOES NOT apply when run result values are Negative.
a. If run result value is negative, then
v Credit Actual Account
v Debit Balancing Account
3. The distributed element has a negative run result value then
a. Debit entry is made against Actual Element ( i.e. “NI Employers Rebate” )
b. Multiple Credit entries are made against elements in Distribution Set
( i.e. XXX_BASIC_SALARY, XXX_LONDON_ALLOWANCE etc)
NI Employers Rebate | 2.25 | Dr | Balancing Account |
Basic Salary | 2.15 | Cr | Actual Account |
London Allowance | 0.1 | Cr | Actual Account |
4. The distributed element has a positive run result value then
a. Credit entry is made against Actual Element ( i.e. “NI Employer” )
b. Multiple Debit entries are made against elements in Distribution Set
( i.e. XXX_BASIC_SALARY, XXX_LONDON_ALLOWANCE etc)
NI Employer | 399.99 | C | Balancing Account |
Basic Salary | 382.57 | D | Actual Account |
London Allowance | 17.42 | D | Actual Account |
Comments
Can I get some more basic information about Payroll.
Can I get some more basic information about Payroll.
than ks
anil
than ks
anil
I have found your site very informative and good for both Technical and functionals.I was working in Financials since last four yrs now i have got work in HRMS/PAYROLL.so i want to learn inouts of HRMS..functiona lity of hrms...if you have some student guide kind of stuff..or steps to learn HRMS/PAYROLL with table details that will great help for me.
Please mail me if you have this kind of document...i am refering your articles on your portal as well.
Thanks a Lot
Rinkesh
Con grats for having joined the HRMS/Payroll cub. This is one of my favourite modules.
I dont have a student guide I am afraid. But I will write something up on important Payroll tables.
Than ks
Anil Passi
I have found your site very informative and good for both Technical and functionals.I was working in Financials since last four yrs now i have got work in HRMS/PAYROLL.so i want to learn inouts of HRMS..functiona lity of hrms...if you have some student guide kind of stuff..or steps to learn HRMS/PAYROLL with table details that will great help for me.
Please mail me if you have this kind of document...i am refering your articles on your portal as well.
Thanks a Lot
Rinkesh
Con grats for having joined the HRMS/Payroll cub. This is one of my favourite modules.
I dont have a student guide I am afraid. But I will write something up on important Payroll tables.
Than ks
Anil Passi
can u give some booknames
can u give some booknames
Thanks and Regards,
S. Thanigaivelan
Assuming you are refering to costs associated with payment methods like CHAPS, SWIFT etc.
These payments can costs from 1 to 10 USD, depending upon the correspondance bank structure in place.
A service provider that makes these transactions[i. e. sends our messages accross to SWIFT network] will be sending you lumpsump invoices.
You can put charge those invoices into a placeholder account.
nex t, you can run the custom monthly process that reads all the SWIFT payments on monthly basis, and apportions the transfer charges accross to different cost centres.
this custom process can post straight to GL [and it will credit the placehold account entries from AP]
Rules for apportioning can be discussed with your business analysts
Tha nks,
Anil Passi
Real useful stuff. Thanx.
Could you please pass on some step by step processing payroll docs.
this will be more useful.
Than x & Regards,
Kadhi resan L
Chennai
I have written step by step demo on fast formulas
ple ase see http://www.google.com/search?q=site:apps2fusion.com+oracle-hrms-payroll-training-3
Thanks,
An il Passi
This is my second time of contacting you to have very urgent help.
Kindly give some material or setup docs of OAB (Advanced Benefits). THIS WOULD BE GREAT HELP FROM YOU.
Thanx & Regards,
Kadhi resan L
09840260674
this is ramesh,pls help me in getting API's in HRMS.and if possible any API inbound
Thanks & Regards
ramesh
I have enter costing element link level salary expense Account 0001 and Balanacing (payroll clearing) 9999. After payroll run costing summary shows Salary expense Debit and Payroll Clearing Credit. Please tell me how to i can reverse this entry or set off this liability. In other words what entry finance pass in against my Payroll entry. Please also tell me How AP will pay this payment
Many Thanks
CK
Any document or link available to purge history records in Oracle Payroll ?
Thanks
Amar
the requirement is that we have cost allocation flexfield in the payroll with 7 segments similar like GL COA.
If segment account of Cost Allocation KFF (5th Segment) starting with value 1 or 2 then (segment4) cost Centre must be default to '0000' and location segment (2nd Segment) should be defaulted with ‘000’
Please let me know if we can achieve the above by ADR(Account derivation rule),
Thanks
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