12 Replies Latest reply on Mar 18, 2011 12:53 PM by 842985

    Oracle HCM R12 India Payroll Taxation

    Renu Gupta
      Hi ,

      I have to implement Oracle Payroll for Indian Localization. I have done all the required setups for earnings & allowances as per customer requirement.When i tried to give the values for the earnings and Allowances and run Payroll, the run result values of Earnings are reflecting properly but facing problem in Balance values(YTD) in SOE.

      I am not sure of the Balance setup configured.

      The Values for Salary(Section 17(1)),Gross Salary,Allowances under Sec 10 in SOE are not reflecting as per the setup done.

      Could you please suggest some pointers where I am missing.

      Thanks in advance

        • 1. Re: Oracle HCM R12 India Payroll Taxation
          It seems your setup - particularly related to balances feeds and input values are incorrect

          Have you created the elements using 'Element Design Wizard'? Is so, the balances needed for proper projection will be populated automatically on creating the earnings/allowances element.

          Use element Design wizard as there are lot of balances and balance feeds involved. If balance feeds are incorrect, salary projecton, taxation will all be wrong.
          1 person found this helpful
          • 2. Re: Oracle HCM R12 India Payroll Taxation
            Renu Gupta
            Thanks for your prompt reply.

            I have created all the elements and allowances through "Element Design Wizard" as instructed by oracle.
            Here for allowances and elements the balance feeds are automatically added accordingly.

            My question is whether we need to do any extra setup for Allowance and Earning Elements in Balance Screen.
            My customer have different allowance elements like conveyance,medical,transport,HRA,Telephone and Special Allowance.

            Can you give any suggestions on this.

            Thanks ,

            Edited by: Renu Gupta on Jan 31, 2011 6:33 AM
            • 3. Re: Oracle HCM R12 India Payroll Taxation
              Renu Gupta
              Any update on this issue..Have anyone configured Payroll for Indian localization, Please provide some pointers on it..
              its really very urgent.

              • 4. Re: Oracle HCM R12 India Payroll Taxation
                You need to choose projection as 'yes' and recurrign type while creating using wizard. if you need earnings/allowances to be projected for all the remaining months in the year.
                e.g is basic is 20000 and payroll is run in april 2010, salary under section 17 will hold value for the entire year i.e
                it is something like Earnings_ASG_YTD + Earnings_for_projection_asg_ptd * remaining months of financial year
                20000 (april's value) + 20000 *11 = 220000= 2.4 lakh
                May be taking GMFZT Log(action parameter's form) and run quickpay for one employee, will give you the necessary tracing information

                usually no further balance feed changes are required, if u choose values in wizard correctly.

                Allowance creation through wizard supports creation of different type of allowance. The supported types come in a LOV( there are about 15-20 allowance types) , which is further dependent on the Fixed Expense/ Actual Expense type that you choose while using wizard

                Edited by: 818822 on 10-Feb-2011 05:26
                • 5. Re: Oracle HCM R12 India Payroll Taxation
                  How you are calculating the pay values for this elements(Earnings & Allowances)?? is it using Fast formulas or manual entries.

                  Just check whether you are giving the standard value for elements(Earnings & Allowance).Since, these standard values are used for projection while calculating the tax.

                  Thanks & Regards,
                  • 6. Re: Oracle HCM R12 India Payroll Taxation
                    Renu Gupta
                    Hi Raghu, Thanks for your prompt reply.

                    For Allowances created through Element design Wizard, I have given the value for Standard value and after running Quick pay the values automatically reflect into Pay Value in SOE.

                    For Earnings Elements i have provided the manual entry for Pay values and Standard Values as well.

                    After running Quick pay for the first initial month, the values in SOE are still giving incorrect values.

                    It would be great if you can help me in this case.

                    • 7. Re: Oracle HCM R12 India Payroll Taxation
                      Hi Renu,

                      Sorry for the delayed reply.

                      How did u create the earnings element?? Did u create using the "Element Description" form or " Element Design Wizard"??

                      As per Oracle Recomendations all the Earnings element in India Localizations are suppose to be created using " Element Design Wizard" which will automatically feeds the balances required for the projection of Income Tax calculations.

                      Hope this will solve your issue.

                      If possible provide me your gmail id.. so that i can you some documents on India payroll which may help you

                      • 8. Re: Oracle HCM R12 India Payroll Taxation
                        can u take an example and give pay value and standard value of an element in
                        1.Element Entry -->Element Entry values
                        2.Quick pay -->Run results form
                        3. SOE - field name in SOE

                        This may help in case you have not identified the cause
                        • 9. Re: Oracle HCM R12 India Payroll Taxation
                          Renu Gupta
                          Hi Raghu,

                          Sorry for the delayed reply. I have created all the Earning and Allowance Elements through Element Design Wizard as per the Oracle specification.

                          But the problem remains same after running Quick pay for specific employee.

                          The YTD Balance value for Salary(under section 17(1)) is reflecting in more amount than expected in SOE.

                          When tried to see the setup in Balances screen for the Balance Salary(section 17(1)) , the value is reflecting from Form 16 Element with input value as salary.

                          But this value is coming from the internal formula for Form 16.

                          My gmail id is : crazyrenu.786@gmail.com

                          Please send me required documents to close this issue which is really urgent.

                          • 10. Re: Oracle HCM R12 India Payroll Taxation
                            Renu Gupta
                            First of all Thanks for the reply you have given.

                            I haven't got the solution for this and will definitely try out the approach provided by you.

                            It would be great if you can provide any relevant documents which will resolve my issue.

                            • 11. Re: Oracle HCM R12 India Payroll Taxation
                              i don't have any documents. Only Logging though GMFZT trace will help you.

                              Alternatively, u can create a simple testcase with just 2 elements -basic as 20000 and allowance as 10000, run payroll for the same number of months , and try to reproduce the case.

                              Give the expected /actual value in SOE. We can then find if there is anything missing in your setup. e,g we can then find if it gives only 4 months' salary or all 12 month's value in SOE
                              • 12. Re: Oracle HCM R12 India Payroll Taxation
                                Hi Renu,

                                Forwarded the documents to your mail ID..Go through these documents which are very helpful.

                                Thanks & Regards,