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OUM
RD.011 FUTURE PROCESS
MODEL
PST Professionals for Smart
Technology
HCM – Payroll

Author: PST Implementation Team

Creation Date: May 27, 2015
Last Updated: June 29, 2016
Document Ref: HCM_PY_01
Version: V1

Approvals:

PST PMO Manager

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PST Implementation
Team

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Document Control

Change Record
5

Date Author Vers Change Reference

ion

12-6- PST Implementation Team V1.0 Submitted Initial Document

2016

Reviewers

Role Date

PST Project Team

PST Implementation Project Manager

Distribution

Copy Name Location

No.

1 Library Master Project Library

Note to Holders:

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If you receive an electronic copy of this document and print it out, please
write your name on the equivalent of the cover page, for document
control purposes.

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Contents

Document Control.......................................................................................
Process Catalog...........................................................................................
Section 1: Oracle Payroll.............................................................................
HCM_PY_01: Element Entry.........................................................................
Element Entry Diagram.............................................................................11
HCM_PY_02: Quick Pay/Payroll Run & Payroll reports................................12
Quick Pay Diagram....................................................................................13
Payroll Run Diagram..................................................................................14
HCM_PY_03: Prepayments.........................................................................15
Prepayments Diagram...............................................................................16
HCM_PY_4: Costing and Costing Report.....................................................17
Costing and Costing Report Diagram........................................................18
HCM_PY_5: Transfer to GL.........................................................................19
Transfer to GL Diagram.............................................................................20
HCM_PY_12: Generate Bank File Report....................................................21
Bank file report Diagram...........................................................................22
Glossary.................................................................................................... 23
Open and Closed Issues for this Deliverable.............................................24

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Purpose
 This document concluding the results of different interactions held between PST & PST
Implementation Project Team & Key User client during the different phases of the project
along with the study of the Future State Model provided by

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Requirement gathering Workshop’s

 Solutions Related Client Meetings
Conference room pilot workshops (CRP1 & CRP 2)
Trainings Conducted Comments
User Acceptance Testing Results
Post Go Life Solution Updates

 The purpose of the Document is to clearly identify the Business Flow functionality that is
in scope for the implementation. This work product is designed to document the Business
Flows, processes, features and functions to be implemented. It includes:

 The Final Process Catalog.

 In-scope Business Flow High level Diagrams.
 In-scope Business Flow Narratives.
 Current Solution Assumptions.
 High level solution to be implemented.
 Validations
 Solution Prerequisites.

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Process Catalog
Below is the process catalog. The cancelled processes are removed from the current version after
discussions in CRP1, CRP2 and other discussions with PST Team

New Process Process Name Process Description

ID

Oracle Payroll

HCM_PY_01 Element Entry Ongoing process for entering the all the payroll
elements required for the employee in the payroll
month

HCM_PY_02 QuickPay/Payroll Run Process Run Quick Pay for single employee or Payroll run
program for all employees in that payroll month to
generate the net pay in that month.

HCM_PY_03 Payroll reports check and Generate payroll reports to check the run results for
reconciliation employees.

HCM_PY_04 Prepayments Process Run the prepayments program to generate the

payment methods for each employee

HCM_PY_05 Costing Run the costing program to generate costing details

for each employee

HCM_PY_06 Costing Reports Check Run the costing report to check the costing accounts
and amounts for each employee

HCM_PY_07 Transfer to GL Process Run the transfer to GL program to transfer all the
amounts with the accounts to the General Ledger.

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Section 1: Oracle Payroll

This Section covers the Processes related to Payroll

Introduction
This Section describes PST requirements for Payroll in business terms, alongside with the
required Solution Assumptions that have to be implemented and a high level description of the
procedures that supports these requirements. This document also describes the high-level
solution design aspects, interfaces required and future possible enhancements.

Oracle Payroll
Oracle Payroll is a solution that helps to effectively manage and control the payroll run for the
employees.
Payroll Implementation will cover the following business areas:
- Payroll Element Entries and calculations

- Quick pay/Payroll Run

- Prepayment

- Costing

- Transfer to GL

General Requirements
- Payroll is monthly and is run for all employees at the same date

- Payroll Month is 30 days

- Payroll year is 365 days

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Oracle Payroll Process High Level Diagram

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HCM_PY_01: Element Entry

Narrative
Element entry is the main input done by the HR team in the payroll cycle. Elements represent all
the accruals, earning, and deductions that affect the total pay of the employee in the month.

Solution Assumptions
- Recurring Elements are entered once. Non-recurring elements to be entered monthly.

- Payroll is monthly and is run for all employees at the same date

- Element list, type and calculations to follow the elements table represented in this
document

High Level Solution

- HR Team will use the salary screen to enter the basic salary for employees with normal
salary calculations.

- HR team will use the salary screen to enter the full salary for employees with fixed salary
calculations

- HR team will use the entries screen to enter the nonrecurring elements each month.
Nonrecurring elements such other earnings, other deductions, Insurance claims…etc.

Validations
Personalization

- N/A

Other validations

- HR team to access the record of all employees.

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- In case of End of Service, the employee will be paid the total amount of the last month
(prorated) and he/she will take the total annual leave balance).

Solution Prerequisites
- Employee master data to be provided and uploaded.

Element List:

- Following is the element list and their properties:

Element Classificati Type Eligibility Rules Proratio

on n

Basic Salary Earnings Recurring All Employees No rules Prorate

d

transportation Earnings Recurring Optional No rules Prorate

Allowance d

Social security Involuntary Recurring All Employees 7.25% after 16 Prorate

deduction deduction working day, 13.75% d
for company

Income tax Involuntary Recurring For single: Prorate

deduction d

basic
salary*12 = x

x-12000 the
first 10000 will
deduct 7% of
basic salary

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next basic
salary*12 = x

x-12000 the
second 10000
will deduct
14%

of basic salary

next basic
salary*12 = x

x-12000 the
third 10000
will deduct
20%

of basic salary

For married:

Exemption in
year = 24000

from
government
4000

The net =
28000

Insurance family Involuntary Recurring Anyone want Deduction during the Prorate
deduction to participate period of the d
insurance contract
(on the total
amount)

Refund Earnings Non All Employees No rules Not

Insurance claims recurring Prorate
d

Exceeded the Involuntary Non Anyone want No rules Not

ceiling Prorate
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permitted deduction recurring to participate d

Insurance

Loss of Involuntary Non Anyone want No rules Not

insurance card deduction recurring to participate Prorate
d

Other earnings Earnings Non All Employees No rules Not

recurring Prorate
d

Travel allowance Earnings Nonrecurrin Optional No rule Not

g Prorate
d

Per diem Earning Nonrecurrin Optional 20 $ Not

g Prorate
d

Other Involuntary Non All Employees No rules Not

deductions deduction recurring Prorate
d

End of service e Earnings Nonrecurrin All Employees Net salary +leave Prorate
g encashment d

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Element Entry Diagram

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HCM_PY_02: Quick Pay/Payroll Run & Payroll reports

Narrative
QuickPay/Payroll is the fundamental process in the payroll system. This process is where the
system will calculate and process all the employees’ elements and return the net pay for the
employees in that employee month.

Quickpay refers to the payroll run done for one employee only when required at any point of the
month ex: process final settlement for a certain employee terminated on 8 th of the month.

Payroll run is the process run by payroll team on the payroll date for all employees in the
organization.

Solution Assumptions
N/A

High Level Solution

- Payroll team will use the quickpay page to run the quickpay for a specific employee

- Payroll team to run the standard payroll run program specifying the month and the payroll
name to be processed

- After the run, payroll team to generate the payroll reports to check the run results.

- If discrepancies found, payroll team to roll back the payroll run , then restart the whole
process by updating the elements.

Validations
N/A

Solution Prerequisites
- Element Entries

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Quick Pay Diagram

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Payroll Run Diagram

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HCM_PY_03: Prepayments

Narrative
Prepayments is the process where the system links the net pay resulting from the payroll run or
quickpay with the employee defined payment method such as the bank details, cheque or cash.

Solution Assumptions
N/A

High Level Solution

- Payroll team will run the prepayment standard program from the request page.

Validations
N/A

Solution Prerequisites
- Payroll Run or Quick Pay processed
- Defined payment method for the employee.

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Prepayments Diagram

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HCM_PY_4: Costing and Costing Report

Narrative
The costing process is the process that assign the employee net pay to the perspective costing
accounts defined by Finance which will be transferred to GL.

Solution Assumptions
N/A

High Level Solution

- Payroll team will run the costing standard programs from the request page.

- Payroll team will run the costing standard report from the request page to ensure the right
amounts are costed to the right ledger accounts

Validations
N/A

Solution Prerequisites
- Payroll Run or Quick Pay processed
- Cost Allocation Flexfield configuration
- Cost Allocation Mapping to GL
- Ledger accounts for every cost allocation segment such as: Cost Center, balancing, natural
account etc.

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Costing and Costing Report Diagram

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HCM_PY_5: Transfer to GL

Narrative
The transfer to GL process is the last process in the payroll cycle. The cycle ends by transferring
the costed amounts allocated to the ledgers to the General Ledger.

Solution Assumptions
N/A

High Level Solution

- Payroll team will run the transfer to GL standard programs from the request page.

Validations
N/A

Solution Prerequisites
- Costing Program is run and processed

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Transfer to GL Diagram

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HCM_PY_12: Generate Bank File Report

Narrative
A bank file report can be built and generated as per the bank requirements and format. This will
reduce the Payroll team from manually putting the data in the bank file before sending it to the
bank

Solution Assumptions
N/A

High Level Solution

- Payroll team will run the custom Bank file report and exported as CSV to be sent to the
bank.

Validations
N/A

Solution Prerequisites
- Payroll Run/Quick pay program is run and processed
- Prepayments program is run and processed
- Direct Deposit payment Method defined for the employee with bank details maintained.

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Bank file report Diagram

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Glossary

Acronym/ Abbreviation Explanation

CI Configurable Item

EDI Electronic Data Interchange

Email Electronic Mail

HD Hard Disk

GB Giga Bytes

FG Federal Government

PST Professionals for Smart

Technology

PMG Program Manager

PM Project Manager

PMR Project Management Review

CRP Conference Room Pilot

PMC Project Management Committee

TM Team Member

DBA Database Administrator

HCM Human Capital Management

CR Core HR

PY Payroll

IREC I-recruitment

PM Performance Management

OLM Oracle Learning Management

OTL Oracle Time and Labor

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Acronym/ Abbreviation Explanation

SSHR Self Service for Human Resources

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Open and Closed Issues for this Deliverable

Open Issues

ID Issue Resolution Responsibility Target Impact

Date Date

1. 2.

3. 4.

5. 6.

7. 8.

9. 10.

Closed Issues

ID Issue Resolution Responsibility Target Impact

Date Date

35

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