Writing Proration Formulas

When the payroll run encounters an event (such as a grade change) that you
have defined as a proration event for the element being processed, it creates two
run results for the element--one for the payroll period up to the day before the
event, and one from the date of the event to the end of the period. You must
define a formula to handle this proration processing for the element. There are
two ways to do this:

o Edit the element's Oracle Payroll formula so that it can handle

proration, or

o Create an additional formula to run after the Oracle Payroll formula

only in periods when a proration event is encountered. You select
this formula in the Proration Formula field on the Proration tab of
the Element window.

Using a separate proration formula has the advantage that proration takes place
even when you enter a pay value directly on the element entry. Embedding the
proration calculation in the Oracle Payroll formula avoids the overhead of calling
the second formula in periods when proration events occur.

If you want to write a proration formula, you must follow these rules:

o Select the formula type Payroll Run Proration.

o The formula inputs can be:

 any of the element input values

 prorate_start (DATE)

 prorate_end (DATE)

o The formula outputs can be:

 any of the element input values

Your localization team may have created example formulas that you can use as
the basis for your own formulas.
It is a very common requirement in Oracle payroll, that when a specific event occurs, e.g. Salary change,
Salary of that particular period should be prorated.

Steps:

1) Create an element

2) Create Element Links

3) Create an Event Group

4) Create a payroll formula

5) Create a formula of type 'Payroll Run Proration'

6) Attach Event group and Proration formula to element

7) Salary Change

8) Run Quick pay or Payroll

Step (1) Create Element

Step (2) Create Element Link

Change element link criteria accordingly.

Step (3) Create Event Group

Update Type Table Column Name

Datetrack Update PAY_ELEMENT_ENTRIES_F EFFECTIVE_END_DATE

Datetrack Update PAY_ELEMENT_ENTRIES_F EFFECTIVE_START_DATE
Datetrack Update PER_PAY_PROPOSALS PROPOSED_SALARY_N

Step (4) Create a Payroll formula

DEFAULT FOR ASG_SALARY IS 0
DEFAULT FOR PAY_PROC_PERIOD_START_DATE IS '4712/12/31 00:00:00' (DATE)
DEFAULT FOR PAY_PROC_PERIOD_END_DATE IS '4712/12/31 00:00:00' (DATE)

RESULT = ASG_SALARY
START_DATE = PAY_PROC_PERIOD_START_DATE
END_DATE = PAY_PROC_PERIOD_END_DATE

RETURN RESULT, START_DATE , END_DATE

Step (5) Create a Proration formula

INPUTS ARE BASIC_SALARY,

PRORATE_START(DATE),
PRORATE_END(DATE)

DEFAULT FOR PAY_PROC_PERIOD_START_DATE IS '01-JAN-0001' (DATE)

DEFAULT FOR PAY_PROC_PERIOD_END_DATE IS '31-JAN-4712'(DATE)
L_PERIOD_START(DATE) = PAY_PROC_PERIOD_START_DATE
L_PERIOD_END(DATE) = PAY_PROC_PERIOD_END_DATE
L_TOTAL_DAYS = DAYS_BETWEEN(L_PERIOD_END,L_PERIOD_START) +1

L_WORKED_DAYS = DAYS_BETWEEN(PRORATE_END,PRORATE_START) +1

PAY_VALUE = (BASIC_SALARY/L_TOTAL_DAYS) * L_WORKED_DAYS

START_DATE = PRORATE_START

END_DATE = PRORATE_END

RETURN PAY_VALUE , START_DATE , END_DATE

Step (6) Attach Event group and Proration formula to element

Step (7) Salary Change

Global HRMS Manager --> People --> Enter and Maintain --> Assignment --> Salary
Step (8) Run Quick Pay

Two element will be shown in Run results. Oracle splits the element execution on change date.

Element 1

Element 2