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Oracle Fusion HRMS (Saudi Arabia): Payroll Implementation and Functional Considerations
Introduction ................................................................................................................................. 1
Whats in this Document.......................................................................................................... 1
Other Information Sources ...................................................................................................... 1
Document Updates ............................................................................................................... 2
Change Record ..................................................................................................................... 2
Comments and Suggestions ................................................................................................... 2
Payroll Data ................................................................................................................................ 3
Person and Employment Payroll Data ..................................................................................... 3
Calculation Cards .................................................................................................................... 5
Statutory Deductions and Gratuity Calculation .......................................................................... 17
GOSI Calculation .................................................................................................................. 17
Social Insurance Calculation for GCC citizens ................................................................. 18
Gratuity Calculation ............................................................................................................... 20
Monthly Gratuity Accrual ....................................................................................................... 24
Elements ............................................................................................................................... 28
Element Classifications ......................................................................................................... 28
Element Templates ............................................................................................................... 32
Elements: Allowances, Unpaid Leave and Loans .................................................................. 35
Gratuity Payment Element .................................................................................................... 48
Salary Basis and Additional Allowance Elements .................................................................. 48
Auto Indirect Elements and Creation of Element Eligibility .................................................... 50
Proration and Retroactivity .................................................................................................... 51
Element Template Change........................................................................................................ 56
Balances ................................................................................................................................... 58
Balances Definitions predefined for Saudi ............................................................................. 59
Balances and SOE ................................................................................................................ 63
Payroll Setup ............................................................................................................................ 67
Payments Setup .................................................................................................................... 67
Consolidation Groups and Payroll Definitions ........................................................................ 72
Salary Basis and Compensation ........................................................................................... 75
Currency Conversion Rates ............................................................................................... 78
Hiring an Employee and Running Payroll for Saudi: Worked Example ...................................... 80
Hire an Employee.................................................................................................................. 80
Assign Additional Information ................................................................................................ 83
Run Payroll and Review Results ........................................................................................... 89
Mandatory Post-Payroll processes ............................................................................................ 91
Calculate Prepayments ......................................................................................................... 91
Archive Periodic Payroll Results............................................................................................ 93
Payments Processing and Payslip ............................................................................................ 95
Payments Processing ........................................................................................................... 95
Oracle Fusion HRMS (Saudi Arabia): Payroll Implementation and Functional Considerations
Introduction
This paper identifies and describes payroll setup tasks for Oracle Fusion Human Resources Management System
(HRMS) for Saudi Arabia (SA).
Oracle Fusion HRMS (Saudi Arabia): HR Implementation and Functional Considerations Guide:
https://support.oracle.com/epmos/faces/DocumentDisplay?id=1567452.1
1
Oracle Fusion HRMS (Saudi Arabia): Payroll Implementation and Functional Considerations
Document Updates
This document is based on the most current application release as of the documents publication date. Content is
updated as needed only to reflect major changes to existing features or when significant new features are added to
the Saudi localization. For this reason, it is possible that some minor UI differences may exist between the version
being implemented and the version described in this document.
Change Record
2
Payroll Data
Person and Employment Payroll Data
For a person to be processed in payroll a payroll relationship must be defined for the same. This section describes
specific requirements for Saudi in terms of payroll relationships including the Saudi-specific information needed
for payroll that must be captured in the employment and payroll relationship data
Payroll Relationship represents the relationship of the person with the Payroll Statutory Unit (PSU). This varies
from country to country, but essentially no balance aggregation is performed above this level for a person.
Each country defines the person types for which a payroll relationship is created. To be processed in payroll, a
person must have a person type of Employee.
In Saudi, the payroll relationship type Standard is used for person type Employee.
You can also create a payroll relationship for other person types such as contingent worker and pending worker.
If the pending worker type is Contingent Worker, then the payroll relationship is type Element Entries Only, if the
pending worker type is Employee, then the payroll relationship must be of type Standard Only.
For contingent workers the payroll relationship is of type Element Entries Only.
For Saudi, a single payroll relationship is created per relationship type. When there is a rehire, the employee is
treated as a new employee and so there is only one payroll relationship per person. The payroll relationship rule
Continuous Period of Service (C) has been predefined to achieve this.
Note: Payroll relationship rule Continuous Period of Service (C) implies that when the HR user creates a new
Work Term, a check is made for a Payroll Relationship of the same type and PSU. If one exists, the LSED of the
payroll relationship will be validated. If it is greater than the Term start date, the Work Term will be attached to it.
If it is less than the Term start date, a new Payroll Relationship will be generated. If one does not exist, a new
Payroll Relationship will be generated. When a Work Term is terminated, if it is the last active Work Term
associated with the Payroll Relationship, the Payroll Relationship will also be terminated.
Note: You can find the predefined data for legislation rules in the Oracle_Fusion_HRMS_Saudi_Payroll_Data.xls
on My Oracle Support (MOS).
Saudi has a requirement to handle multiple assignments within a legal employer. A person may have multiple
assignments within different terms. Possible valid combinations are:
1 Payroll Relationship 1 Term 1 Assignment
1 Payroll Relationship 1 Term n Assignments
1 Payroll Relationship n Terms n Assignments
Social insurance deduction is calculated at payroll relationship level. Earnings related to social insurance are
considered at all the three levels, that is, Relationship, Terms, and Assignments.
Saudi -specific data must be captured at a payroll relationship level and the calculation of some country specific
allowances is derived from this. To capture this information, two flexfields are enabled for the Saudi at the payroll
relationship level:
If data is migrated from a legacy system, this Saudi-specific field must be populated. The following table shows the
attributes of this flexfields for record PAY_PAY_RELATIONSHIPS_DDF
(DESCRIPTIVE_FLEX_CONTEXT_CODE = SA):
Contract Data
Saudi requires contract data to be captured for every payroll relationship, which also affects gratuity processing.
For this reason, it is strongly recommended that Saudi payroll customers use the 3-tier employment model. If there
is no requirement to have multiple terms and multiple assignments, the 2 tier single contract single assignment
employment model can also be used.
Saudi localization has the following 3 contract types:
Fixed Contract
Unlimited Contract
Task-specific Contract
The contract details region on the employment data page contains Saudi-specific contract data information as
follows:
Employment Status
Profession
If data is migrated from a legacy system, this Saudi-specific field must be populated. The following table shows the
attributes of this flexfields for record PER_CONTRACT_LEG_DDF
(DESCRIPTIVE_FLEX_CONTEXT_CODE = SA):
Calculation Cards
Calculation card functionality is used to capture data needed for payroll processing that cannot be captured in
global fields. These cards are used to capture data at the organization level as well as the person level.
The Saudi localization provides two predefined cards at the payroll statutory level (PSU). These are:
Employer GOSI Details
Employer Gratuity Details
For employees, there are two predefined cards:
Employee GOSI Details card
Employee Gratuity Details
The flexfield structure used to store information entered in the calculation cards is described in
Oracle_Fusion_HRMS_Saudi_Payroll_Data.xls on My Oracle Support (MOS).
The employer GOSI details card uses the following information for social insurance calculation at the legal entity
level:
Reference Formula: You can define the formula that calculates the GOSI Reference salary at the legal
entity level. The GOSI Reference salary value is derived from this formula and is used as the reference
value for GOSI calculation. This formula must return the value using variable
GOSI_REFERENCE_SALARY. For additional details on the calculation, refer to the section on GOSI
calculation.
To enter or modify this information:
Sign in to the Oracle Fusion application using a role that has the profile of a superuser and privileges to create all
organizational structures:
Select the Employer GOSI Details Card from the given list. If no card exists, click Create. Select the Employer
GOSI Details and click Continue. The Manage Calculation Cards page appears:
Select the predefined reference formula in the Saudi Employer GOSI Details at Payroll Statutory Unit :
Employer Gratuity Details Card
The gratuity card contains the payroll statutory unit (PSU) gratuity details and uses the following information for
gratuity calculation at the legal entity level:
Reference Formula: You can define your own reference formula to calculate the paid gratuity amount
and select it here. The formula must return the values using variable PAID_GRATUITY. This overrides
the amount calculated by the seeded gratuity formula in the Employer Gratuity Details card in the gratuity
calculation component details.
Salary Formula: You must define your own salary formula for gratuity calculation. Once you have
defined the salary formula, you can select it here. The formula must return the values using variable
MONTHLY_SALARY. Additional details on the calculation are provided in the section on gratuity
calculation.
To enter or modify this information:
1. Follow steps 1-5 used for Employer GOSI Calculation Card.
2. Select the Employer Gratuity Details:
The calculation component on the employee GOSI card corresponds to the social insurance contribution payroll
deduction element, defined at the legislative level. The employee GOSI component details section captures
additional information used to calculate the deduction. When the employee GOSI calculation card is created, the
GOSI calculation component and the GOSI calculation components details record are automatically created. You
can create additional calculation component details such as SA Adjust GOSI Reference Salary and SA Setup GOSI
Reference Salary.
The GOSI card is automatically created when the new hire process for an employee is completed, provided the
employee citizenship information is specified. If the citizenship information is not specified, then the GOSI card
must be created manually for this employee.
For the automatic card creation to be enabled, your Payroll Product Usage must be set to Oracle Fusion Payroll or
Payroll Interface.
To check if a calculation card exists, or create a new calculation card:
1. Sign in to the Oracle Fusion application using a role that has the profile of a payroll manager:
Select the Employee GOSI Details Card from the given list. The Manage Calculation Cards page appears:
Note: If no card exists, select Create and create the calculation card manually.
Note: You must associate the GOSI card to a person for the payroll process to complete successfully. You must
enter valid Citizenship, Annuities, Hazards and Registered for Social Insurance field values. All other fields are
optional.
Consider the following points when entering the data:
Citizenship: GOSI deductions are only processed for GCC citizens. You must specify the citizenship of
the employee as the GOSI calculations are processed based on this information. You must also ensure
that the employee has a Civil Identity Number specified as one of the national identifiers for Saudi
Citizens. For non-Saudi citizens this identifier is not essential.
Annuities: This field is the indicator for processing the Annuities component of Social Insurance. For
Saudi citizens, the value is always set as Yes.
Hazards: This field is the indicator for processing the Hazards component of Social Insurance. For Saudi
citizens, the value is always set as Yes.
Registered for Social Insurance: This field is the indicator for processing the social insurance
calculations for employees. For Saudi citizens, the value is always set as Yes.
Exception Type: For UAE citizens only.
Exempt from SI Contribution Difference: This field is an indicator for processing the difference in
employers subscription. The employee will normally pay the difference in the contribution unless the
field is set to Yes when the Country of Citizenship has agreed to pay the difference on behalf of the
employee.
2. Select Saudi GOSI Reference Salary Setup in the Calculation Component Details field:
2. Select Saudi GOSI Reference Salary Adjustment in the Calculation Component Details field:
4. Enter the GOSI Reference Salary Adjustment amount:
Creating Associations
Note that the calculation card is associated automatically to the appropriate TRU and Employment Terms. Click
the Associations tab to ensure that the calculation card is associated with the appropriate TRU and Employment
Terms:
Gratuity card is created automatically upon employee termination. When the gratuity card is created, the gratuity
component, component details, and association are automatically created.
For the automatic card creation to be enabled, your Payroll Product Usage must be set to Oracle Fusion Payroll or
Payroll Interface.
1. Follow steps 1-4 used for Employee GOSI details card.
2. Select the Employee Gratuity Details card:
3. To enter the gratuity details override amount, you must manually create the calculation component details.
Click Create to create the calculation component details and enter the required information in the Override
Amount field:
Note: You can enter an override amount to be paid to the employee as gratuity. If override amount is specified, this
amount overrides the reference formula for gratuity calculation defined at the PSU level, and also the calculation
formula defined at legislative level.
Creating Associations
The calculation card is associated automatically to the appropriate TRU and Employment Terms. Click the
Associations tab to ensure that the calculation card is associated with the appropriate TRU and Employment
Terms:
However the TRU and Employment Terms can be changed using the edit option.
GOSI Calculation
GOSI Calculation comprises of 2 components i.e. Annuities and Hazards. Annuities is applicable to all Saudi
citizens whereas Hazards is applicable to all who work in Saudi. Annuities is contributed both by employee and
employer at 9%. Hazards are contributed only by employer at 2%.
Contributions are calculated as percentages of a GOSI Reference Salary. The GOSI Reference Salary components
are elements like basic compensation, accommodation and transport allowances. The legislation determines which
elements are liable to social insurance contributions, whereas the amounts and definitions depend on the
employers regulations.
The amount of the GOSI Reference Salary can be overridden at the person level.
If this amount is not entered at the individual level, you can define a formula used to calculate the GOSI
Reference Salary at the legal employer level.
Finally, if neither individual override, nor legal employer formula, are defined, the GOSI Reference Salary
uses the value of earnings elements that are subject to social insurance. These elements are identified by
subclassifications and feed the balance Subject to GOSI. Further detail on how Saudi has defined
element classifications and balances can be found in the related sections.
The GOSI Reference Salary has a monthly minimum value and a monthly ceiling. This means that if the
monthly social insurance income is lower than the minimum value, contributions are calculated on the
minimum value. If the monthly social insurance income exceeds the monthly ceiling, contributions are
due on earnings up to the monthly ceiling. A minimum monthly GOSI Reference Salary of 1500 SAR and
monthly ceiling of 45000 SAR are predefined.
For the private sector, the current contribution rates for employees is 9% and employers is 9%. From the
1st September 2014, an additional 1% contribution is included for both the employees and employers to
cover Unemployment Insurance (Saned).
If the employees payroll relationship is terminated before the end of the current month, no contribution is
deducted. If termination date is last day of the current month the full contribution is deducted.
The social insurance calculation is based on the GOSI element. The Social Insurance deduction is a part of the
Social Insurance component group.
Viewing component groups, deductions, and elements:
1. Sign in to the application using the payroll manager role.
2. Navigate to the Payroll Calculation work-area
3. From the Tasks pane, select the Manage Payroll Calculation Information task.
4. In the Manage Payroll Calculation Information page, search for the Social Insurance component group.
5. In the search results, click Social Insurance component group to view the details.
Calculation Information Repository
Parameters used in the calculation of social insurance are stored in the calculation information repository. These
parameters are predefined by the Saudi localization and cannot be modified in the implementation phase.
To view predefined parameters:
1. Log in with a Payroll Manager role.
2. Navigate to task Manage Payroll Calculation Information in the Payroll Calculation work area.
3. Select Social Insurance Deduction:
Gratuity Calculation
Persons working in Saudi Arabia are entitled to an additional payment upon termination which is called Gratuity.
The entitlement to this payment is accrued during the work relationship.
The gratuity amount to be paid is driven by Saudi labor laws. If you are not following the Saudi labor laws, you
can define your own formula for gratuity processing. The following two options are available:
You can define your own formula and create a setup according to the values to be returned to your
formula run results. In such a scenario, you may not need to use the localization solution for gratuity
processing.
You can define your own reference formula gratuity processing, which substitutes the gratuity formula
defined at the legislative level. If a user-defined formula exists, then the seeded formula executes it.
The localization solution for gratuity processing uses the following rules:
The duration of service and the contract type (fixed or unlimited) determine the number of days of
gratuity payment to which the payee is entitled per year of service. These days are retrieved from the
calculation information repository. Note that the duration of service can be reduced by unpaid or
unauthorized absences. This is obtained by creating elements for Unpaid Leave classification and
attaching this element to the absence type. If an absence with this newly created absence type is recorded,
the Unpaid Leave elements days input value will feed the Leave Without Pay balance. In the Gratuity
formula, the Leave Without pay balance is used to get the unpaid absences.
The base salary for gratuity payment is calculated through the salary formula selected at the legal employer
level.
If the person is terminated, contract type and termination initiator is checked and amount is paid:
o If termination initiator is employer, then the complete gratuity accrued is paid to the employee.
o If termination initiator is the employee, the application fetches the payment factor using the contract
type and period of service. Payment factor is available in the calculation information repository.
Fixed Contracts
Gratuity Entitlement: An employee is entitled to half month salary for the first 5 years and full month salary for
each additional year.
Gratuity Payment: If employer terminates the employee, the employee is paid the complete gratuity that has
accrued.
If employer terminates the employee or if the contract has expired, the employee is paid the complete gratuity that
has accrued if the contract was more than 2 years.
If employee has resigned before completing 2 year then no gratuity is paid.
If the employee has completed between 2 to 5 years, 1/3 gratuity is paid.
If the employee has completed between 5 to 10 years, 2/3 gratuity is paid.
If the employee has completed more than 10 years, complete gratuity is paid.
If the contract has expired and the employee has completed more than 2 year in service he will get the complete
gratuity upon his termination.
Unlimited Contracts
Gratuity Entitlement: An employee is entitled to half month salary for the first 5 years and full month salary for
each additional year.
Gratuity Payment:
If employer terminates the employee, the employee is paid the complete gratuity that has accrued.
If employee has resigned before completing 2 year then no gratuity is paid.
If the employee has completed between 2 to 5 years, 1/3 gratuity is paid.
If the employee has completed between 5 to 10 years, 2/3 gratuity is paid.
If the employee has completed more than 10 years, complete gratuity is paid.
Exception
A female worker is entitled to full gratuity amount if she resigns within 6 months of her marriage or three months
after giving birth to a child. No minimum length of service is required in such cases.
Gratuity payment is calculated through supplemental earnings Gratuity Payment that is part of component group
Gratuity. Calculations are made through the predefined element Gratuity Payment.
To view details on component groups, deductions and elements:
1. Sign in to the Oracle Fusion application using a role that has the profile of a payroll manager:
2. Navigate to task Manage Payroll Calculation Information in the Payroll Calculation work-area.
3. Select GRATUITY Deduction and view the details.
The calculation factors are used for calculating gratuity payments (gratuity bands represent the eligibility months).
5. Click on Range Values to display the details of calculation factors.
Monthly Gratuity Accrual
The application calculates the accrual of gratuity on a monthly basis. The amount calculated is the amount that an
employee would be entitled to, if they were terminated at the end of that month and if they were eligible for
payment. The monthly gratuity accrual calculation is done through the Gratuity Accrual Initiator element. The
application keeps a record of the total accrued amount and the incremented accrued amount (periodic difference).
The monthly gratuity accrual considers the following details to calculate the gratuity:
Date of termination: The current pay period end date is taken as the date of termination.
Length of service: All types of paid leave are considered to calculate the length of service. Unpaid leave is
not included.
Base Salary: The base salary for gratuity payment is calculated through the salary formula selected at the
legal employer level.
Termination Initiator: The calculation assumes the employer as the termination initiator. And the
employee is entitled to the full amount.
Probation: If the employee is on probation, the accrual amount is zero.
Contract type: The entitlement is based on Contract type and is captured on Person Management.
Note: For information on Person Management Details, refer Section Person Data Setup of Oracle Fusion
HRMS (Saudi Arabia): HR Implementation and Functional Considerations white paper.
Entitlement : The entitlement for fixed contract and unlimited contract employees is 0.5 months salary
for the first 5 years and 1 month salary for each additional year Elements
1. Sign in to the Oracle Fusion application using a role that has the profile of a Superuser:
2. Navigate to the Payroll Calculation work-area.
3. From the Tasks pane, select the Manage Fast Formulas task.
4. Create a fast formula of type Oracle Payroll that calculates the monthly gratuity.
5. Navigate to the task Define Legal Entities for Human Capital Management:
6. Select the task Manage Legal Entity Calculation Cards:
7. If no Gratuity Employer Details card exists, create one. Otherwise, select this card.
8. In the Reference Formula field, select the formula you want to use to calculate monthly gratuity.
Elements
Elements are the building blocks of payroll and benefits. There is no limit to the number of elements that can be
defined. Policies or business rules that govern the allocation of these elements to workers can be specified at the
element level.
Elements can represent:
Earnings, such as salary, wages, and bonuses
Compensation, such as employee stock purchase and insurance plans
Absences from work
Tangible items distributed to persons, such as tools, uniforms, mobile phones, or computers
Statutory deductions, such as employee social insurance
Voluntary deductions, such as loans
Involuntary deductions, such as court orders
Employer social insurance and other employer liabilities
Elements are grouped into primary classifications, such as Earnings and Voluntary Deductions. In a human
resources department, you can use the primary classifications to identify groups of elements for information and
analysis purposes. In a payroll department, the classifications control processing, including the sequence in which
elements are processed and the balances they feed.
Oracle Fusion supplies many predefined elements (that cannot be modified at the implementation level), while
additional elements can be generated, defining certain types of compensation and payroll elements through
templates.
Element templates include the elements, balances, balance feeds, and formulas required for payroll processing.
Templates have various rules associated with them which will be used to create data based on certain criteria. The
template engine will get the values for the rules from the template and process the seeded template structure to
create appropriate data that is required.
Using the template infrastructure, the Saudi localization has defined its structures for creating a standard set of
elements for earnings, by modifying a global template questionnaire.
When creating an element the questionnaire that guides you through the creation depends on the classifications
selected for the element itself.
Once you complete the questionnaire and submit the process, the relevant payroll objects are generated. You now
have the ability to edit these objects (using the review pages and the object navigator) to ensure they fully meet you
business requirements.
Element Classifications
Global Payroll has defined a set of primary classifications and the Saudi localization has selected the ones that are
applicable for the country.
Additionally a set of secondary classifications and subclassifications have been defined specifically by the
localization.
Secondary classifications are used in the element template process to drive the questionnaire and also to
create the element with the needed characteristics.
Subclassifications are used to control balance feeds and identify a sub type of the particular classification.
All the classifications predefined for Saudi are listed in the Oracle_Fusion_HRMS_Saudi_Payroll_Data.xls on My
Oracle Support (MOS)
Secondary classifications and subclassifications can be created at implementation level and they do not have any
impact on the Saudi predefined data.
Primary Classifications
The following primary classifications are enabled for the Saudi localization:
Absences
Absence Accruals
Direct Payments
Employer Charges
Information
Involuntary Deductions
Pre-statutory Deductions
Social Insurance Deductions
Supplemental Earnings
Taxable Benefits
Voluntary Deductions
Standard Earnings
In the implementation phase, when creating an element though element template functionality, you are prompted
to select the primary classification for that element and this drives the questionnaire to use and also the
characteristics of the element that will be created.
Notes:
Subclassifications Standard Earnings Subject to GOSI is defaulted for all elements with primary
classification Standard Earning. This implies that all these elements will be part of the contributory salary.
Standard Earnings Subject to Unpaid Leave is available for all elements with primary classification
Standard Earning. This implies that all these elements will have negative amount which will be deducted
from the salary.
Subclassification Taxable Benefits Subject to Social Insurance is defaulted for all elements with primary
classification Taxable Benefits. This implies that all these elements will be part of the contributory salary.
Subclassification Absences Subject to GOSI is defaulted for all elements with primary classification
Absences. This implies that all these elements will be part of the contributory salary.
Subclassification Information Subject to GOSI is defaulted for all elements with primary classification
Information. This implies that all these elements will be part of the contributory salary.
Subclassification Supplemental Earnings Subject to GOSI is defaulted for all elements with primary
classification Supplemental Earnings. This implies that all these elements will be part of the contributory
salary.
Secondary Classifications
Secondary classifications are connected to primary classifications. The following secondary classifications have
been defined for the Saudi localization:
Primary Classification Standard Earnings:
Children Social Allowance
Cost of Living Allowance
Grade Allowance
Hourly Salary
Housing Allowance
Overtime Allowance
Shift Allowance
Social Allowance
Transport Allowance
Unpaid Leave
Primary Classification Voluntary Deductions:
Loans
Primary Classification Supplemental Earnings:
Gratuity Payments
Primary Classification Absences:
Maternity
Other
Sickness
Vacation
The selection of the secondary classification will drive the questions of the element template and the characteristics
of the element that is created. For the allowances created as standard earning these characteristics are described in
more detail in the section of element allowances.
Subclassifications
Subclassifications are connected to primary classifications. The following subclassifications are defined for the
Saudi:
Primary Classification Standard Earnings:
Standard Earnings Subject to GOSI
Standard Earnings Subject to Unpaid Leave
All these subclassifications are attributed by default to the elements created for the corresponding primary
classification.
During implementation, if there is a requirement to define an element that is not a standard earning, but is part of
the contributory salary, the steps to follow are:
1. Define a new subclassification and the corresponding subclassification rule.
2. Feed the contributory balance with this subclassification.
Reviewing Classifications
4. Select a specific classification to view secondary classifications and subclassifications defined for the
primary classification:
Element Templates
A specific element template is available in Saudi localization for the following primary classification:
Standard Earnings
For all other primary classifications, the standard global template is used also when creating Saudi elements.
When selecting Standard Earnings as primary classification:
If no secondary classification is selected, then the standard element template is followed and no specific
Saudi consideration is applied.
If the Allowances secondary classifications are selected, then allowances are created following Saudi
specific rules that apply to the specific allowance type.
If Unpaid Leave secondary classification is selected, an element with Saudi specific characteristics is
created.
In the global standard template, the section of Calculation Rules is not displayed because the related global objects
must not be created for these elements since Saudi specific objects must be created instead.
Viewing, for example, an element created with secondary classification Hourly Salary:
You can see that specific input values have been created and a fast formula (ZHRX-SA-V-
HOURLY_HOURLY_FF) is used to perform the calculations for this type of allowance.
When selecting Voluntary Deductions as primary classification:
If no secondary classification, then the standard element template is followed and no specific Saudi
consideration is applied.
If the Loans secondary classification is selected, then deduction element is created following Global
specific rules that apply to loans.
From a template questionnaire perspective, there is no difference with the global standard template, but in this
case, set Saudi-specific objects are created in addition to the global ones.
Further information is provided in the element details section of the document.
The availability of features in element templates depends on the type of license you have.
HR-Only: As an HR-only customer, you get access to the basic version of the element templates. These templates
create the element and you need to create the input values, formulas, balances to meet your business requirements.
Payroll Interface: As a payroll interface customer, you get access to a number of payroll features not available to
an HR-only customer. This includes access to the full earnings element that will create the element, input values,
formulas, balances. These earnings elements can be processed through the calculation to Gross process which is
also available to Payroll Interface customers. Any other type of element, such as deductions, is created using the
basic version of the element templates and you need to create the input values, formulas, balances.
Payroll: A payroll customer gets access to the full set of earning and deduction templates. These templates create
the element, input values, formulas, balances.
Disclaimer Note: If you want to use an element in the payroll process, then the element must be created after the
payroll license is set. This creates the full set of data needed for payroll processing, such as element definition,
input values, balances, formulas. If payroll license is set after the element is created the above data will not be
created.
The process for setting licenses is described below:
1. Navigate to Payroll Process Configuration Task using the Functional Setup Manager (FSM):
3. If you have overridden the group, then the payroll license must be set for that group.
4. Select Payroll License to decide Payroll License parameter name and edit it. Change the appropriate
license value.
You can enter following values:
HR_ONLY This must be set when customer is having an HR only license.
PAYROLL_INTERFACE This must be set when customer is having HR only and payroll interface
license.
PAYROLL This must be set when customer is having both HR and Payroll licenses.
5. Navigate to Manage Default Process Configuration Group Profile Option Values Task in the FSM:
6. Set the appropriate configuration group in the profile option value field:
Allowances
The calculation rules for the below allowances are generated when creating the element using the related template.
Implementation teams need to elect the appropriate secondary classification when generating a new allowance
element. Implementation teams can also set up grade rates and value definitions.
The calculations of these allowances are triggered through element entries.
Children Social Allowance
The children social allowance depends on the number of dependent children. This allowance is paid to local
nationals only.
The following input is required for the calculation:
Citizenship information in the calculation card for the person.
Contact details for the employee in the contacts section in the Manage Person page with contact type
Child. The dependent must also be marked as Statutory Dependent. Number of dependent children is
based on the data entered here.
A range value for the seeded value definition Children Social Allowance. Allowance per child is based
on the value entered here.
To create the range value:
1. Sign in to the Oracle Fusion application using a role that has the profile of a payroll manager.
2. Navigate to task Manage Calculation Value Definitions in the Payroll Calculation work area.
3. Select the value definition Children Social Allowance:
4. Enter the value of the allowance per child by adding a row in Range Values
Note: The From Value must be 0, while any value can be chosen for the To Value since it does not affect
calculation.
Note: The process of entering a value in value definitions is the same for the other allowances.
The requirement is to create an overtime allowance by which an overtime percentage of 110% is paid for regular
days and 150% is paid for rest days.
The following tasks need to be performed:
1) Create grade rates to store the percentages. Navigate to task Manage Grades in Workforce Structures
work area.
2) Add a grade rate for each one of the percentages:
3) Associate these grade rates to range values. Navigate to the task Manage Value Definitions in the
Payroll Calculation work area:
Unpaid Leave
Unpaid leave element is generated by selecting unpaid leave as secondary classification in the element template.
The unpaid elements input value Days feeds the Leave Without Pay balance. The Leave Without Pay balance is
used in Gratuity calculation to get the unpaid or unauthorized absence.
This element also reduces the earnings, based on the amount calculated by the unpaid leave formula.
This worked example describes how you can create an allowance element for Children Allowance.
1. Sign in to the Oracle Fusion application using a role that has the profile of a Payroll Manager:
2. Select Manage Elements in the Setup and Maintenance or Payroll Calculations work area:
5. Complete the fields at the top of the Create Element page, and then answer the questions:
6. Click Next, and complete the rest of the questionnaire:
7. Verify the information and click Submit to create the new element:
8. On the Element Summary page, provide additional information as needed, such as input values, processing
rules, and eligibility:
Use the Element Overview panel to navigate through the setup pages.
Note: Input values have been created for this element to receive information needed to calculate the value of
the allowance.
Note: Element eligibility must be defined so that the element is linked to an element entry.
9. In the Element Overview panel, select Actions, and Create Element Eligibility.
10. On the Element Eligibility page, enter a name in the Element Eligibility Name field and click Submit.
Note: If you enter only a name and no eligibility criteria, the element is eligible for all employees.
The Loan element for Saudi is created for the primary classification Voluntary Deductions and the secondary
classification Loan.
Loan approval, processing and payments are outside the scope of payroll process. The payroll process only
supports the loan recovery process. Since the loan is interest free, there is no need for interest calculation.
The element that is created through the element template is the loan recovery element. Multiple loan recovery
elements can be created if the enterprise has several types of loans.
The input data that is needed to perform the loans calculation is entered though the input values at element entry
level.
1. The input fields are generated by the element template when creating the element:
2. Loan recovery is triggered for an employee by adding an element entry for an element classified as loan:
3. Click Continue.
4. Complete the fields at the top of the Create Element page, and then answer the questions:
5. Click Next, and complete the rest of the questionnaire:
6. Verify the information and click Submit to create the new element:
7. On the Element Summary page, provide additional information as needed, such as input values, processing
rules, and eligibility:
Use the Element Overview panel to navigate through the setup pages.
8. Repeat this entire process to create a set of elements to support your business needs. For example, you might
create another element (ZHRX-SA-RRF-Allowance) for an additional allowance.
Proration
Prorating Earnings
When you create an element you must consider if the element may be subject to proration, for example, an
employee may have a hire date or termination date after the 1st of the month which will affect the calculation of
pay and non-statutory deductions.
For elements enabled for proration the template associates by default the global standard proration formula:
Proration formula GLB_EARN_PRORATION uses natural days proration. For example, when there is a hire or
termination in the course of the month, it uses as a proration factor:
Employment days in the period or Calendar days in the period
To meet different business requirements, implementation teams can create your own specific proration formula
and attach it to the elements that follow these business requirements.
Events that trigger the proration calculation are identified through the selected proration group.
1. Log in with a Payroll Manager role
2. Navigate to task Manage Event Groups in the Payroll Calculation work-area
3. Select Entry Changes for Proration
4. View the changes that trigger proration
Retroactive Pay
When you create an element you must consider if the element may be subject to retroactive changes, for example,
an employee receives a pay award that is backdated to a previous pay period. Only elements that are set up to
include a retroactive event group can have retroactive element entries.
Identify the events that trigger retroactive pay calculation by specifying the retroactive group.
1. Sign in to the application with a Payroll Manager role.
2. Navigate to Payroll Calculation work area
3. From the Tasks pane, select the Manage Event Groups task.
4. In the Manage Event Groups page search for event group by Retroactive type and Legislative Data
Group.
5. From search results, select the event group and view the Date Effective Events for the event group.
A global event group is predefined, which is not Saudi-specific. Additional event groups can be added in the
implementation phase, if required.
Saudi Arabia-Specific Retroactive Pay Elements
For calculating retroactive GOSI, the following elements have been created.
Employee GOSI Annuities Retro
Employer GOSI Annuities Retro
Employer GOSI Hazards Retro
Employee GOSI Arrears Retro
Employer GOSI Subsidy Retro
Employee GOSI Saned Retro
Employer GOSI Saned Retro
GOSI Reference Salary Retro
NonSaudi GOSI Hazards Retro
NonSaudi GOSI Reference Earnings Retro
NonSaudi Joiner GOSI Hazards Retro
NonSaudi Joiner GOSI Reference Earnings Retro
NonSaudi Joiner and Leaver GOSI Hazards Retro
NonSaudi Joiner and Leaver GOSI Reference Earnings Retro
NonSaudi Leaver GOSI Hazards Retro
NonSaudi Leaver GOSI Reference Earnings Retro
Saudi GOSI Annuities Retro
Saudi GOSI Hazards Retro
Saudi GOSI Reference Earnings Retro
Saudi Joiner GOSI Annuities Retro
Saudi Joiner GOSI Hazards Retro
Saudi Joiner GOSI Reference Earnings Retro
Saudi Joiner and Leaver GOSI Annuities Retro
Saudi Joiner and Leaver GOSI Hazards Retro
Saudi Joiner and Leaver GOSI Reference Earnings Retro
Saudi Leaver GOSI Annuities Retro
Saudi Leaver GOSI Hazards Retro
Saudi Leaver GOSI Reference Earnings Retro
Note:
1. If you have a retrospective change, the difference to the GOSI Annuities and Hazards is deducted in the current or
open pay period.
2. If the change in salary is backdated to January, and the GOSI Reference Salary is used to determine GOSI
Annuities and Hazards, then the GOSI Reference Salary will need to be amended, otherwise the GOSI calculation
will be unaffected.
When you create an allowances element you can specify the allowance rules in the Additional
Details page:
Social Allowance
Social Allowance for Married
Social Allowance for Single
Cost of Living Allowance
Cost of Living Allowance Percent
Minimum Cost of Living Allowance
Maximum Cost of Living Allowance
Children Social Allowance
Children Social Allowance
Balances
Payroll balances show the accumulation of values over a period of time. The values can be currency, hours, or any
other numeric value. Most of the required balances are predefined and additional balances are created automatically
when creating elements. Implementation teams can edit the definition of these generated balances, or create
additional balances for calculations or reporting.
When a balance definition (balance type) is created, balance category and a unit of measure can be selected. Each
balance definition is grouped in a predefined balance category for quicker processing. Balance categories are
legislation-specific and cannot be modified.
Each balance can have multiple dimensions, which define the specific value to be retrieved. Balance dimensions
are predefined and typically combine these components:
Time span, such as run, period to date, or fiscal year to date
Employment relationship level, either assignment, terms, or payroll relationship
Context, required for some balances only, such as tax reporting unit (TRU), element, or payroll
When a specific balance dimension is linked to a balance type, this results in creating a defined balance.
The value assigned to a balance during processing is determined by balance feeds defined for the balance.
Balance feeds can be by element input values or by balance classification run results.
Balance Feeds by Element: Indicates one or more element input values to add or subtract from a balance.
If a balance is fed by a single element, it is called a primary balance.
Balance Feeds by Classification: Indicates that all elements belonging to a specific classification will feed
that balance. Any type of classification can be used to feed the balance but it is to be remarked that if a
primary classification is added as a balance feed, the children of this classification from the secondary or
subclassifications cannot be added. Also, you cannot use both secondary classifications and
subclassifications in the same balance feed.
Balances are important for reporting because in most of the reports balances represent the values that are displayed
in the output. Balances can be aggregated (through balance attributes) in balance groups and balance groups are
the entities that are used by payroll reports to identify the balances to be included in specific sections of the report.
A set of balance definitions are provided by global payroll, but localizations have a predefined set of definitions in
addition to global data.
Saudi localization has predefined data related to the following balance definitions:
Balance Categories (enabling of global categories)
Balance Types
Balance Dimensions and Usages (enabling of global dimensions)
Defined Balances
Balance Groups and Attributes
Balance Categories
Balance types predefined by the Saudi localization are listed in the Saudi Balances Spreadsheet:
Oracle_Fusion_HRMS_Saudi_Payroll_Balances.xlsx on My Oracle Support (MOS).
This section describes the balances that affect payroll calculation and that are likely to be fed by elements created
in the implementation phase.
A separate section is dedicated to the net pay balance due to its impact on the payment process.
Gross
Balance Gross Earnings collects all the gross earnings applicable for Saudi and is fed by 2 primary classifications:
Standard Earnings
Supplemental Earnings
All elements created at the implementation level with these primary classifications feed this balance.
Unpaid Leave
Balance Subject to Unpaid Leave: Collects all the earnings that are not due to be paid when an employee is on
unpaid leave. This balance is fed by subclassification Subject to Unpaid Leave.
This subclassification is associated by default to earnings with primary classification Standard Earnings and
Information and so all elements created in the implementation phase with these primary classifications will feed
this balance.
Balance Leave Without Pay: Used to track the unpaid absences that are used in Gratuity Calculation.
Social Insurance
Balance GOSI Annuities: This balance is the sum of Employee GOSI Annuities (Social Insurance deductions)
and Employer GOSI Annuities (Employer charges). It collects all the earnings that are liable to Social Insurance
and fed by subclassification Subject to Social Insurance.
This subclassification is associated by default to earnings with primary classification Standard Earnings and
Information and so all elements created in the implementation phase with these primary classifications feeds this
balance.
The value of this balance is used as the contributory salary if this has not been overridden.
Balance Subject To GOSI is used as base in the contributions calculations. Subject to Social Insurance is designed
to store the earnings that make up the contributory base, but for private sector the base can be overridden or
adjusted so, eventually, if there is no override or adjustment balance, contributory salary balance is equal to balance
Subject to Social Insurance, otherwise it will account for the override or adjustment.
Balance GOSI Hazards is used to store employers payment towards Hazards components for each employee.
During the payment process, the net pay balance is used to store the amount to be transferred as remuneration for
the payee. A net pay balance, named Net Pay, is predefined in Saudi, and no additional setup is required during the
implementation phase.
To view the Total Pay balance:
1. Select Manage Balance Definitions in the Payroll Calculations or Setup and Maintenance work areas.
2. Enter Net Pay in the Name field and select a Saudi LDG, then click Search:
3. Click the Net Pay balance in the Search Results to view the balance information:
Balance dimensions enabled by the Saudi localization are listed in the Saudi Balances Spreadsheet
Oracle_Fusion_HRMS_Saudi_Payroll_Balances.xlsx on My Oracle Support (MOS).
As per the employment model, balances are maintained at all four levels, that is: Payroll Relationship, Payroll
Terms, Payroll Assignment, and Group levels.
The only dimensions that can be selected when creating a balance in the implementation phase are dimensions
enabled by the Saudi localization.
Combining balance types and enabled dimensions Saudi has delivered a set of defined balances that are listed in the
Saudi Balances Spreadsheet Oracle_Fusion_HRMS_Saudi_Payroll_Balances.xlsx on My Oracle Support (MOS).
Balance Groups group together balances. In the Saudi localization, they are used mainly for reporting or online
viewing purposes, to identify balances that must be considered in specific sections. The way these balance groups
are used in specific features, such as Statement of Earnings (SOE) are detailed in the sections describing the
features in detail.
The following balance group has been predefined in the Saudi localization:
SA_PAY_ARCH_GROUP_BALANCES_GROUP
This balance group is used in the payslip, whereas all other reports use the global balance groups, to which country
specific balances are connected.
The connection between defined balances and balance groups is managed through balance attributes.
Balance attributes can either be:
Created automatically through a defaulting mechanism depending on balance category and dimension
Predefined by localization
The Saudi Balances spreadsheet Oracle_Fusion_HRMS_Saudi_Payroll_Balances.xlsx contains information on:
Defaulting criteria
Attributes predefined by the Saudi localization
When a balance that meets defaulting criteria is created in implementation phase the related attribute is
automatically associated to the defined balance.
Defaulting criteria and attributes cannot be added or modified in the implementation phase.
Balance Groups can be restricted for a specific localization, so that only balances of certain dimensions or
categories are associated with a Balance Group. This is done through data that is predefined in the Pay Balance
Usage Items table. Data predefined in this table for the Saudi localization is shown in the Saudi Balances
spreadsheet Oracle_Fusion_HRMS_Saudi_Payroll_Balances.xlsx on My Oracle Support (MOS).
The Quick Reference Summary is split into four tabs. The following contain data retrieved from balance results:
Gross-to-Net: This tab includes results for balances (defined balances) connected to balance group:
GLB_SUMMARY_GROSS_TO_NET_BALANCE_GROUP that is connected to attribute
GLB_SUMMARY_GROSS_TO_NET_ATTRIBUTE
Information: This tab includes results for defined balances connected to balance group:
GLB_SUMMARY_INFORMATION_BALANCE_GROUP that is connected to attribute
GLB_SUMMARY_INFORMATION_ATTRIBUTE
Earnings
This section includes results for defined balances connected to balance group:
GLB_SOE_EARNINGS_BALANCE_GROUP. This is connected to the following attributes:
GLB_EARNINGS_ATTRIBUTE
GLB_SUPPLEMENTAL_EARNINGS_ATTRIBUTE
GLB_TAXABLE_BENEFITS_ATTRIBUTE
Deductions
This section includes results for defined balances connected to balance group:
GLB_DEDUCTIONS_BALANCE_GROUP. This is connected to the following attributes:
GLB_PRE_STAT_DEDUCTIONS_ATTRIBUTE
GLB_INVOLUNTARY_DEDUCTIONS_ATTRIBUTE
GLB_VOLUNTARY_DEDUCTIONS_ATTRIBUTE
GLB_TAX_DEDUCTIONS_ATTRIBUTE
GLB_SOCIAL_INSURANCE_DEDUCTIONS_ATTRIBUTE
Information
This section includes results for defined balances connected to balance group:
GLB_INFORMATION_BALANCE_GROUP that is connected to attribute
GLB_INFORMATION_ATTRIBUTE
Employer Contributions
This section includes results for defined balances connected to balance group:
GLB_SOE_EMPLOYER_CHARGES_BALANCE_GROUP. This is connected to the following attributes:
GLB_EMPLOYER_TAXES_ATTRIBUTE
GLB_EMPLOYER_CHARGES_ATTRIBUTE
Direct Payments
This section includes results for defined balances connected to balance group:
GLB_DIRECT_PAYMENTS_BALANCE_GROUP that is connected to attribute
GLB_DIRECT_PAYMENTS_ATTRIBUTE
Taxable Benefits
This section includes results for defined balances connected to balance group:
GLB_TAXABLE_BENEFITS_BALANCE_GROUP that is connected to attribute
GLB_TAXABLE_BENEFITS_ATTRIBUTE
Predefined SOE Data for Saudi
The Saudi localization uses the global Balance Groups for SOE and consequently the global attributes.
To display balances seeded by the Saudi localization in sections where attributes are not generated by default, there
is a predefined assignment of attributes to a set of defined balances.
The complete list of Saudi delivered associations between defined balances and attributes is contained in the Saudi
Balances Spreadsheet Oracle_Fusion_HRMS_Saudi_Payroll_Balances.xlsx on My Oracle Support (MOS).
For Saudi, the following connections are defined between balances and sections of the SOE report.
Gross-to-Net Summary Section
Employee GOSI Annuities
Gross Earnings
Gross Pay
Net
Net Pay
Information Summary Section
Employee GOSI Arrears
GOSI Reference Earnings
Gratuity Paid
Leave Without Pay
Subject to GOSI
Earnings Section
Gratuity Paid
Deductions Section
Employee GOSI Annuities
Information Section
GOSI Reference Earnings
Employee GOSI Arrears
Subject to GOSI
Attributes cannot be created or modified in the implementation phase.
When you need to create a defined balance with a specific balance category that is mapped in the balance attributes
defaulting setup, then an attribute is associated to the defined balance. This also occurs for balances created by the
element template. If that attribute is connected to a balance group that is displayed in a section of SOE, then the
balance you have defined will also be displayed.
Payroll Setup
Before processing payroll or post payroll processes a set of base tasks must be performed by the implementation
team to define basic structures such as:
Banks and Bank Accounts
Organization Payment Methods
Consolidation Groups
Payroll Definitions
Salary Basis
Compensation Elements
Currency Conversion Rates
Payments Setup
To process payments, a payment method must be assigned to a payee. Setup of banks and branches must be done
before entering bank accounts and payment methods for the payee.
No banks or branches are predefined in the Saudi localization. Banks and branches must be defined during
implementation. This can be done manually, by entering the banks and branches in the application, or it can be
done in a mass upload process.
Banks
To define banks:
1. Sign in to the application with a role that has implementation privileges, such as
APP_IMPL_CONSULTANT.
2. Select Manage Banks in the implementation project task list:
3. Click Create.
4. On the Create Bank page, provide the required information:
In order for the EFT process to be completed successfully the Bank Code should be entered as the Bank Number.
Bank Branches
2. Click Create.
3. On the Create Bank Branch page, provide the required information:
Bank Accounts
Once banks and branches are set up, you can define the bank accounts for the organization. Normally,
implementation teams set up bank accounts that are used at an organizational level, such as the source bank
accounts for payments, rather than bank accounts at the individual payee level.
To define bank accounts:
1. Select Manage Bank Accounts in the implementation project task list:
2. Click Create.
3. On the Create Bank Account page, provide the required information:
Note: If you want to use this bank account for processing payments related to payroll, select the Payroll
option in the Account Use field.
Note: The only Legal Entities that can be selected are the ones that have been assigned to a Primary Ledger.
Assignment can be done in task Assign Legal Entities:
After setting up banks, you can define the payment methods that can be used within the organization itself.
No organization payment methods are predefined in the Saudi localization. Implementation teams will need to
create the ones applicable to the enterprise.
To define organization payment methods:
1. Select Manage Organization Payment Methods in the implementation project task list:
2. Click Create.
3. Select the LDG associated with this payment method:
4. On the Create Organization Payment Method page, enter the required information:
In the process of creating an organization payment method, a payment source needs to be created:
Note: Saudi supports the following Payment Types: Cash, Cheque, and Electronic Funds Transfer (EFT).
Consolidation Groups
Consolidation groups are used within the organization to enable grouping of different payrolls for reporting
purposes. No consolidation groups are predefined in Saudi. If you are creating payroll definitions for the
implementation, you must define at least one consolidation group first, since it is mandatory information for
payroll definitions.
To set up consolidation groups:
1. Sign in to the application with a role that has implementation privileges, such as
APP_IMPL_CONSULTANT.
2. Select Manage Consolidation Groups in the implementation project task list:
5. Click Save.
Payroll Definitions
Payroll definitions contain calendar and offset information that determine when payments are calculated and paid.
Using payroll definitions, you can specify payment frequency, processing schedule, and other parameters for a
particular payroll. Payroll period types, such as weekly or monthly, determine the interval at which you pay
employees. The only period type supported for Saudi is Calendar Monthly.
Each payroll definition can be associated with only one payroll period type, and you must set up at least one
payroll definition for each payroll period type that you use to pay employees. When you create a payroll definition,
the complete payroll schedule is automatically generated, based on the selected payroll period type, any offsets or
calendar adjustments, and the number of years that you specify. Once you have saved a payroll definition, you can
assign employees to it on the Manage Payroll Relationships page.
Before you can create a payroll definition, you must have already defined the LDG and consolidation group.
No payroll definitions are predefined in Saudi.
To set up payroll definitions:
1. Select Manage Payroll Definitions in the implementation project task list:
2. Click Create.
3. Select the LDG for this payroll definition, and click Continue:
4. On the Create Payroll page, enter the required information:
7. Click Next, and then finalize the creation of the payroll definition by clicking on Submit.
Salary Basis
4. On the Create Salary Basis page, select the payment element to use for the salary basis and provide the
required information:
Note: Selecting Amount as input value will enable the prorating of the amount by period frequency when payroll
is run.
Individual Compensation
3. Select the Dates tab and set the payment start and end dates:
5. Select the Plan Access tab and indicate whether to restrict access to this plan:
6. Select the Instruction Text tab and add any instructions you want to associate with the plan.
Currency Conversion Rates
Ensure that the currency conversion rates are defined before running a payroll for GCC citizens.
4. In the Manage Daily Rates page, click the Daily Rates tab.
5. Click Create in Spreadsheet to download the Daily Rates spreadsheet template.
6. After downloading the spreadsheet, provide the login and enter the rate details.
7. Click Submit to save and process the rates.
Note: The Record Status column indicates that the record is exported to the interface table.
Note: If you don't specify the conversion rate type at the enterprise level, then the Payroll process uses the default
conversion rate type, Corporate.
5. Click Done.
Hire an Employee
To perform tasks related to person and employee management, you would typically sign- in to the application
using a role connected to a user, such as Human Resource Specialist:
The new hire process is the first task in the workforce lifecycle.
To hire an employee:
1. Select New Person under Workforce Management in the Navigator:
Remuneration
Remuneration to the employee can be assigned either through Salary Basis and Compensation (that will
automatically generate element entries or directly creating element entries).
In the example below, you enter remuneration using the setup for Salary Basis and Compensation.
Adding a Salary
1. Sign in to the Oracle Fusion application using a role that has the profile of a Human Resource Specialist
(HR_SPEC_ALL).
2. Select Manage Salary in the Person Management work area:
3. Click Create, then complete the fields on the Add Salary window:
4. On the Manage Salary page, select the previously created Salary Basis and enter a Salary Amount, such as
2500 SAR per month:
Note: Selectable salary basis are limited to the ones defined for the LDG that is assigned to the payroll statutory
unit connected to the legal employer of the employee.
When you save this record, an element entry with the specified start and end dates is automatically generated. You
can view the entry on the Manage Elements Entries page:
Adding Compensation
3. On the Award Compensation window, select the previously created compensation plan and enter the
compensation amount, such as 1500 SA as standard earnings:
When you save this record, an element entry with the specified start and end dates is automatically generated. You
can view the entry on the Manage Element Entries page:
Once banks and branches have been loaded in the system and a payroll definition has been assigned to the
employee, you can add payment methods to the employee record.
To assign personal payment methods:
1. Select the Manage Personal Payment Methods task in the Payroll Distribution work area:
2. Search for and select the employee.
3. On the Manage Personal Payment Methods page, click Create:
4. On the Personal Payment Method page, select the Organization Payment Method for this employee:
Note: If the payment type is EFT, you must add a bank account and provide banking details
Note: An employee can have multiple payment methods. Use the Payment Amount Type and Percentage
fields to manage distribution across different payment methods.
Calculation Cards
For payroll to be processed for a Saudi employee, the Employee GOSI Calculation card must be present. A Social
Insurance calculation card is automatically created, however you may wish to review and amend the details.
To view, edit and create calculation cards:
1. Select the Manage Calculation Cards task in the Payroll Calculation work area:
2. Select the employee and verify that Employee GOSI Details card is created:
3. Review the default values that have been assigned to the card and, if required, edit the data:
Note: If the card was automatically created as part of the new hire process, the value for Citizenship is derived
from Person Information and defaulted from the citizenship field in the hire page.
Payroll run
1. Select the Submit a Process or Report task in the Payroll Calculation work area.
2. Select the LDG for which the payroll is to be calculated and flow pattern Calculate Payroll:
You can review the payroll results once the process is completed successfully:
Calculate Prepayments
To run the calculate prepayments process:
1. Select the Submit a Process or Report task in the Payment Distribution work area
2. Select the LDG for which the process is being run and flow pattern Calculate Prepayments:
3. Enter the parameters to run the report:
Payroll Flow: Identifier for the process that is being run. You can enter a value each time the process
is executed. You can choose any format to describe the payroll flow.
Payroll: Payroll definition for which payroll is to be run.
Process Start Date: Start date of the process for which the prepayment is run.
Process End Date: Start date of the process for which the prepayment is run.
6. Click Next
Specify the flow interaction range and schedule the process date and time if required. Review the details before
you submit the process.
7. Click Submit.
Verify the process completion and view the generated report.
Note: A message appears to verify the payroll flow. If the process is complete, you can view the report.
Payments Processing
Global payroll provides a global process that generates .XML file containing data generated by payroll that is
relevant for payments processing.
The Saudi localization has predefined an e-text template in Oracle Business Intelligence Publisher which generates
an EFT file from the XML. The EFT file has the structure prescribed for Saudi.
To generate the EFT file, no setup is required in the implementation phase.
Report Execution
1. Select the Submit a Process or Report task in the Payment Distribution work area
2. Select the LDG for which the process is to be run and flow pattern Make EFT Payments:
3. Enter the parameters to be used to run the report:
Payroll Flow: Identifier for the process that is being run. You can enter a value each time the process is
executed. You can choose any format to describe the payroll flow.
Payroll: Payroll definition for which payroll is to be run.
Process Start Date: Start date of the process for which the prepayment is run.
Process End Date: Start date of the process for which the prepayment is run.
Organization Payment Method: Process the employees with the selected organization payment
method.
4. Click Next
Specify the flow interaction range and schedule the process date and time if required. Review the details before
you submit the process.
5. Click Submit.
Verify the process completion and view the generated report.
Note: A message appears to verify the payroll flow. If the process is complete, you can view the report:
View the results:
Note: Once payment process is executed for a person for a specific period, the person will not be selected if the
process is rerun. To rerun the payment for an already processed person, the whole execution needs to be rolled
back.
The global Generate Cheque Payments process generates an XML output. This XML output will contain the data
that is to be printed on the cheque template.
Saudi localization has predefined a Rich Text Format (RTF) template in BIP that generates a printout from the
XML. The Generate Cheque Payments report has a predefined structure for Saudi and consists of two sections:
The first section will contain the following information:
Bank Name
Branch Name
Account Name
Account Number
Employee Name
Cheque Number
Cheque Date
Net pay in numbers and letters.
The second section contains:
Cheque Number
Cheque Date
Payroll Relationship Number
Employee Name
Employee Organization Name
Job Title
List of earnings elements and amounts
List of deductions elements and amount
Total amount to be paid
The third section contains:
Accrual Plan
Absence Days
Annual Leave Balance
Note: All earnings with classification Standard Earnings and Supplemental Earnings templates are displayed under
Earning region, and all the deductions with classifications Social Insurance Deductions, Pre-Statutory Deductions,
Voluntary and Involuntary deductions are displayed under deductions region.
To generate the cheque payments, no set up is required in the implementation phase.
Report Execution
1. Select the Submit a Process or Report task in the Payment Distribution work area
2. Select the LDG for which the process is to be run and flow pattern Generate Check Payments:
Payslip
You can generate a payslip for each payment made for an employee for a given pay period, after successfully
completing the Event Archive for Payroll and Generate Cheque Payments or Direct Deposit processes.
Information such as Employee Details, Payroll Information, Earnings, and Payment Methods are displayed in a
payslip, as read-only.
The payslip consists of the following regions:
Employee Details
Payroll Information
Summary of Payments
Earnings
Deductions
Payment Information
Payslip Regions
This section describes in detail the content of each region and what you can set up in the implementation phase.
Employee Details
This region displays personal details of the Employee.
This is predefined and the following details are displayed in this region:
Full Name
Alternate Name
Employee Number
Civil Identifier
Nationality
Organization
Job
Position
Grade
Location
GOSI Reference Salary
For each element, whose calculation value is different from zero, amount and description are printed in the payslip.
Any elements, created at implementation phase, and having the above primary classifications are included in this
region.
Deductions
This region contains all the employee deductions.
Elements which have the following primary classifications are considered to be deductions:
Involuntary Deductions
Voluntary Deductions
Pre- Social Insurance Deductions
Social Insurance
For each element, whose calculation value is not zero, the amount and description are printed in the payslip.
Any element, created at implementation phase, and having the above primary classifications is included in this
region.
Payment Information
This region contains details about the payment method and bank details for the employee to whom the payment
has been made.
This is predefined and the following details are displayed in this region:
Payment Method
Bank Name
Bank Branch
Account Name/Cheque Number
Amount
Report Execution
1. Select the Submit a Process or Report task in the Payment Distribution work area.
2. Select LDG for which the process is to be run and flow pattern Generate Payslips:
3. Enter the parameters used to run the report:
Payroll Flow: Identifier for the process that is being run. You can enter a value each time the process is
executed. You can choose any format to describe the payroll flow.
Payroll: Payroll definition for which payroll is to be run.
Process Start Date: Start date of the process for which the prepayment is run.
Process End Date: Start date of the process for which the prepayment is run.
4. Click Next
Specify the flow interaction range and schedule the process date and time if required. Review the details before
you submit the process.
5. Click Submit.
Verify the process completion and view the generated report.
Note: A message appears to verify the payroll flow. If the process is complete, you can view the report.
GOSI Form 3
The GOSI Form 3 is a mandatory report required from employers in Saudi. This form should be completed by the
employer for each worker in his service and under his sponsorship. The form is presented to GOSI along with the
worker's birth document, if the worker is not registered with GOSI. The employer also completes the form for any
worker who leaves his service, to notify the GOSI of such movement. This report is a monthly report. The report
is distributed to the GOSI office to which the employer is registered. The report is printed per employee.
This report contains the following blocks of information:
Employer Information
Employee Personal Information
Employee Employment Information
Employee Termination Information
The setup for retrieving the information is predefined.
You can find the content for the setup for this report in the section that contains employee compensation
information. Elements that contribute to each information block are defined by the element classification.
The mapping between fields in the report and element classifications or balances is documented in the SA Reports
Mapping.xls in MOS.
Elements created during the implementation phase with classifications that are mapped to report fields, contribute
to the values reported in those fields.
Report Execution
1. Select the Submit a Process or Report task in the Regulatory and Tax Reporting work area
2. Select the LDG for which the process is to be run and flow pattern Run GOSI Form 3:
4. Click Next
Specify the flow interaction range and schedule the process date and time if required. Review the details before
you submit the process.
5. Click Submit.
Verify the process completion and view the generated report.
Note: A message appears to verify the payroll flow. If the process is complete, you can view the report:
GOSI Form 4
The GOSI Form 4 report is a mandatory report required from employers in Saudi. This report is a monthly report
which lists the Saudi and non Saudi joiners and leavers along with their monthly contributions. The report is
distributed to the GOSI office to which the employer is registered.
This report contains the following blocks of information:
Employer Information
New hires Information
Terminations Information
Monthly Contributions Information
Setup for retrieving this report is predefined.
You can find the content for the setup for this report in the section that contains employee compensation
information. Elements that contribute to each information block are defined by the element classification. The
details of the mappings between fields in the compensation section of the report and element classifications are
documented in the SA Reports Mapping.xls on My Oracle Support (MOS).
Elements created at the implementation phase with classifications that are mapped to report fields will contribute
to the values reported in those fields.
Report Execution
1. Select the Submit a Process or Report task in the Regulatory and Tax Reporting work area
2. Select the LDG for which the process is to be run and flow pattern Run GOSI Form 4:
Payroll Flow: Identifier for the process that is being run. You can enter a value each time the process is
executed. You can choose any format to describe the payroll flow.
Payroll Statutory Unit: Payroll Statutory Unit for which the report is run.
Month: Month for which the report is run.
Year: Year for which the report is run.
4. Click Next
Specify the flow interaction range and schedule the process date and time if required. Review the details before
you submit the process.
5. Click Submit.
Verify the process completion and view the generated report.
Note: A message appears to verify the payroll flow. If the process is complete, you can view the report:
GOSI Form 5
The GOSI Form 5 report is a mandatory report required from employers in Saudi. This report is a monthly report.
The report is distributed to the GOSI office to which the employer is registered. On each page the report displays
10 joiner and 10 leavers.
This report contains the following blocks of information:
Employer Information
New hires Information
Terminations Information
Monthly Contributions Information
Setup for retrieving this report is predefined.
You can find the content for the setup for this report in the section that contains employee compensation
information. Elements that contribute to each information block are defined by the element classification. The
details of the mappings between fields in the compensation section of the report and element classifications are
documented in the SA Reports Mapping.xls on My Oracle Support (MOS).
Elements created at the implementation phase with classifications that are mapped to report fields will contribute
to the values reported in those fields.
Report Execution
1. Select the Submit a Process or Report task in the Regulatory and Tax Reporting work area
2. Select the LDG for which the process is to be run and flow pattern Run GOSI Form 5:
Payroll Flow: Identifier for the process that is being run. You can enter a value each time the process is
executed. You can choose any format to describe the payroll flow.
Payroll Statutory Unit: Payroll Statutory Unit for which the report is run.
Month: Month for which the report is run.
Year: Year for which the report is run.
4. Click Next
Specify the flow interaction range and schedule the process date and time if required. Review the details before
you submit the process.
5. Click Submit.
Verify the process completion and view the generated report.
Note: A message appears to verify the payroll flow. If the process is complete, you can view the report:
Saudi IPE Report
The Saudi IPE Report is a statutory report that is generated once a year from the employers in Saudi Arabia. The
report lists GCC employees as of January every year. The report includes GOSI Reference Earnings for the current
year and 8 earlier years for those employees listed in the report.
Report Execution
1. Select the Submit a Process or Report task in the Regulatory and Tax Reporting work area
2. Select the LDG for which the process is to be run and flow pattern Run Saudi IPE Report:
Payroll Flow: Identifier for the process that is being run. You can enter a value each time the
process is executed. You can choose any format to describe the payroll flow.
Payroll Statutory Unit: Payroll Statutory Unit for which the report is run.
Year: Year for which the report is run.
4. Click Next
Specify the flow interaction range and schedule the process date and time if required. Review the
details before you submit the process.
5. Click Submit.
Verify the process completion and view the generated report.
Note: A message appears to verify the payroll flow. If the process is complete, you can view the report.
Report Execution
1. Select the Submit a Process or Report task in the Regulatory and Tax Reporting work area
2. Select the LDG for which the process is to be run and flow pattern Run Saudi IPE Consolidated
Report:
4. Click Next
Specify the flow interaction range and schedule the process date and time if required. Review the
details before you submit the process.
5. Click Submit.
Verify the process completion and view the generated report.
Note: A message appears to verify the payroll flow. If the process is complete, you can view the report.
Saudi Wage Protection Payment Output file is a statutory report that an employer needs to submit to a Wage
Protection agent at the end of each month. The report details information about the wages paid to individual
employees. All file contents will be in ASCII with record formats as comma separated values (CSV).
Report Prerequisites
The following process must be completed for the payroll period you are running the report for:
1. Payroll Run
2. Pre-payments
3. Archiver
Report Execution
1. Select the Submit a Process or Report task in the Regulatory and Tax Reporting work area.
2. Select the LDG for which the process is to be run and flow pattern Run Saudi WPS Payment Output
File Report.
o File Reference: This field should be used for the establishments reference for the full message.
The reference used must be unique for the establishment, i.e., the same reference must not be
used in more than one WPS payment message file regardless of the date of sending. A duplicate
file reference will cause the entire WPS payment message file to be rejected by the
establishments bank.
4. Click Next.
5. Specify the flow interaction range and schedule the process date and time, if required. Review the details
before you submit the process.
6. Click Submit.
7. Verify the process completion and view the generated report.
Note: A message appears to verify the payroll flow. If the process is complete, you can view the report.
Report Execution
1. Select the Submit a Process or Report task in the Regulatory and Tax Reporting work area.
2. Select the LDG for which the process is to be run and flow pattern Run Disabled Workers Report.
6. Click Submit.
7. Verify the process completion and view the generated report.
Note: A message appears to verify the payroll flow. If the process is complete, you can view the report.
Report Execution
1. Select the Submit a Process or Report task in the Regulatory and Tax Reporting work area
2. Select the LDG for which the process is to be run and flow pattern Run Statutory Deductions
Register:
Report Execution
1. Select the Submit a Process or Report task in the Payment Distribution work area.
2. Select the LDG for which the process is to be run and flow pattern Run Payroll Activity Report:
3. Enter parameters to run the report:
Payroll Flow: Identifier for the process that is being run. You can enter a value each time the process is
executed. You can choose any format to describe the payroll flow.
Scope: Select either Summary or Detailed.
Payroll: Payroll definition for which payroll is to be run.
Process Start Date: Start date of the process for which the prepayment is run.
Process End Date: Start date of the process for which the prepayment is run.
Consolidation Group: Select the name of the consolidation group.
Payroll Statutory Unit: Limits the output to a specific PSU.
Tax Reporting Unit: Limits the output to a specific TRU.
Payroll Relationship Group: Limits the output to a predefined group of Payroll Relationships.
Person: Limits the output to a selected person.
Person Page Break: Select Yes if you want a Page Break after each Persons report.
Hide Records with Zero Value: Select Yes if you want to limit the report to the non-zero balances.
Process Configuration Group: Select a Process Configuration Group if you want a log file generated for
the report.
5. Click Next
Specify the flow interaction range and schedule the process date and time if required. Review the details before
you submit the process.
6. Click Submit.
Verify the process completion and view the generated report.
Note: A message appears to verify the payroll flow. If the process is complete, you can view the report:
Ensure that the Calculate Payroll process must be run and complete for the payroll period.
The balances should have dimension Group Tax Unit Run attached to it through Manage
Balance Definitions.
Every earnings or deduction balance relating to hours worked has to have the Group Tax
Unit Run dimension attached to it to ensure that Hours on the report is populated correctly.
This report includes balances that belong to the following Balance Groups
GLB_GTN_EARNINGS
GLB_GTN_DIRECT_PAYMENTS
GLB_GTN_EMPLOYER_CHARGES_GROUP_BALANCES
GLB_GTN_DEDUCTIONS
Report Execution
1. In the Payroll Checklist work area, from the Tasks pane, select the Submit a Process or Report task.
2. Specify the LDG.
3. Search for and select the Run Gross-to-Net Report flow pattern.
4. Click Next to enter the process parameters.
Ensure that the Calculate Payroll process must be run and complete for the payroll period.
This report includes balances that belong to the following Balance Groups
GLB_SOE_EARNINGS_BALANCE_GROUP
GLB_DEDUCTIONS_BALANCE_GROUP
GLB_DIRECT_PAYMENTS_BALANCE_GROUP
Report Execution
1. In the Payroll Checklist work area, from the Tasks pane, select the Submit a Process or Report task.
2. Specify the LDG.
3. Search for and select the Run Payroll Balance Report flow pattern.
4. Click Next to enter the process parameters.
6. Payroll Flow: Identifier for the process that is being run. You can enter a value each time the process
is executed. You can choose any format to describe the payroll flow.
Process Start Date: Start date of the process for which the prepayment is run.
Process End Date: Start date of the process for which the prepayment is run.
Payroll: Payroll definition for which payroll is to be run.
Consolidation Group: Select the name of the consolidation group.
Payroll Statutory Unit: Limits the output to a specific PSU.
Tax Reporting Unit: Limits the output to a specific TRU.
Balance Category: Limits the output to a specific Balance category
Location: Limits the output to a specific Location.
Payroll Relationship Group: Limits the output to a predefined group of Payroll Relationships.
Person: Limits the output to a selected person.
Process Configuration Group: Select a Process Configuration Group if you want a log file generated for
the report.
5. Click Next
Specify the flow interaction range and schedule the process date and time if required. Review the details before
you submit the process.
6. Click Submit.
Verify the process completion and view the generated report.
Note: A message appears to verify the payroll flow. If the process is complete, you can view the report..
Element Results Report
This report uses balance groups to allow different localizations to control which balance amounts
are shown. The report can be run independently or as part of a payroll flow.
Prequisites:
Ensure that the Calculate Payroll process must is run and complete for the payroll period.
This report includes balances that belong to the following Balance Groups
GLB_DEDUCTIONS_BALANCE_GROUP
GLB_SOE_EARNINGS_BALANCE_GROUP
GLB_DIRECT_PAYMENTS_BALANCE_GROUP
Report Execution
1. In the Payroll Checklist work area, from the Tasks pane, select the Submit a Process or Report task.
2. Specify the LDG.
3. Search for and select the Run Element Results Report flow pattern.
4. Click Next to enter the parameters.
Specify the parameters as follows:
Payroll Flow: Identifier for the process that is being run. You can enter a value each time the process is
executed. You can choose any format to describe the payroll flow.
Payroll: Payroll definition for which payroll is to be run.
Process Start Date: Start date of the process for which the prepayment is run.
Process End Date: Start date of the process for which the prepayment is run.
Payroll Statutory Unit: Limits the output to a specific PSU.
Tax Reporting Unit: Limits the output to a specific TRU.
Balance: Limits the output to a specific Balance.
Balance Category: Limits the output to a specific Balance category.
Person: Limits the output to a selected person.
Process Configuration Group: Select a Process Configuration Group if you want a log file generated for
the report
5. Click Next
Specify the flow interaction range and schedule the process date and time if required. Review the details before
you submit the process.
6. Click Submit.
Verify the process completion and view the generated report.
Note: A message appears to verify the payroll flow. If the process is complete, you can view the report..
Payroll Register Report
You can generate the Payroll Register Report separately or as a part of the payroll flow. You can
choose the summary or detail mode when you specify the report parameters.
The Payroll Register Summary report displays the total amount of hours, earnings and
deductions categorized by Balance Category for each Payroll Statutory Unit and Tax Reporting
Unit. The Payroll Register Detail report displays the complete payroll run details categorized by
Balance Category for each employee. This can be used for payroll verification, validation and
auditing purposes
Prerequisites
Ensure that the following processes are run and complete for the payroll period:
Payroll Register Detail Report will display balances connected to the following balance groups:
GLB_PAYROLL_ASSIGNMENT_EARNINGS_BALANCE_GROUP
GLB_PAYROLL_ASSIGNMENT_OTHER_DEDUCTIONS_BALANCE_GROUP
GLB_PAYROLL_ASSIGNMENT_PRE_TAX_DEDUCTIONS_BALANCE_GROUP
GLB_PAYROLL_ASSIGNMENT_TAX_DEDUCTIONS_BALANCE_GROUP
GLB_PAYROLL_ASSIGNMENT_BALANCE_CLASSIFICATION_BALANCE_GROUP
GLB_PAYROLL_TERMS_EARNINGS_BALANCE_GROUP
GLB_PAYROLL_TERMS_OTHER_DEDUCTIONS_BALANCE_GROUP
GLB_PAYROLL_TERMS_TAX_DEDUCTIONS_BALANCE_GROUP
GLB_PAYROLL_TERM_BALANCE_PRE_TAX_DEDUCTIONS_BALANCE_GROUP
GLB_PAYROLL_RELATIONSHIP_BALANCE_CLASSIFICATION_BALANCE_GROUP
GLB_PAYROLL_RELATIONSHIP_EARNINGS_BALANCE_GROUP
GLB_PAYROLL_RELATIONSHIP_OTHER_DEDUCTIONS_BALANCE_GROUP
GLB_PAYROLL_RELATIONSHIP_PRE_TAX_DEDUCTIONS_BALANCE_GROUP
GLB_PAYROLL_RELATIONSHIP_TAX_DEDUCTIONS_BALANCE_GROUP
Report Execution
1. In the Payroll Checklist work area, from the Tasks pane, select the Submit a Process or
Report task.
2. Specify the LDG.
3. Search for and select the Run Payroll Register Report flow pattern.
Prerequisites
Ensure that the following processes are run and complete for the payroll period:
Report Execution
1. In the Payroll Checklist work area, from the Tasks pane, select the Submit a Process or
Report task.
2. Specify the LDG.
3. Search for and select the Run Deduction Report flow pattern.
Payroll Flow: Identifier for the process that is being run. You can enter a value each time the process is
executed. You can choose any format to describe the payroll flow.
Process Start Date: Start date of the process for which the prepayment is run.
Process End Date: Start date of the process for which the prepayment is run.
Payroll: Payroll definition for which payroll is to be run.
Consolidation Group: Select the name of the consolidation group.
Payroll Statutory Unit: Limits the output to a specific PSU.
Tax Reporting Unit: Limits the output to a specific TRU.
Deduction Category
Deduction
Location
Process Configuration Group: Select a Process Configuration Group to generate a log file for the
report.
5. Click Next
Specify the flow interaction range and schedule the process date and time if required. Review the details before
you submit the process.
6. Click Submit.
Verify the process completion and view the generated report.
Note: A message appears to verify the payroll flow. If the process is complete, you can view the report.
Payment Register Report
The report is used for the verification, reconciliation, and audit of payment distributions.
You can generate the report in two modes:
Summary Mode: Use it to verify the total amounts paid by payment category, payment type,
status, and payment method.
Note: The reports dont include payments made to third parties. Such payments are listed on
another register.
Detail Mode: Use it to validate payments for each employee, including the payment amount,
bank, and check information.
You can generate the report independently or as a part of the Payroll process.
Prerequisites
Ensure that the following processes are run and complete for the payroll period:
1. In the Payroll Checklist work area, from the Tasks pane, select the Submit a Process or
Report task.
2. Specify the LDG.
3. Search for and select the Run Payment Register Report flow pattern
Payroll Flow: Identifier for the process that is being run. You can enter a value each time the process is
executed. You can choose any format to describe the payroll flow.
Scope: Select either Summary or Detailed.
Process Start Date: Start date of the process for which the prepayment is run.
Process End Date: Start date of the process for which the prepayment is run.
Payroll: Payroll definition for which payroll is to be run.
Payment Process: Specify payment process.
Consolidation Group: Select the name of the consolidation group.
Payroll Statutory Unit: Limits the output to a specific PSU.
Tax Reporting Unit: Limits the output to a specific TRU.
Payroll Relationship Group: Limits the output to a predefined group of Payroll Relationships.
Person: Limits the output to a selected person.
Payment Category: Limits the output to a selected payment category.
Payment Type: Limits the output to a selected payment type.
Payment Method: Limits the output to a selected payment method.
Location: Limits the output to a specific Location
5. Click Next
Specify the flow interaction range and schedule the process date and time if required. Review the details before
you submit the process.
6. Click Submit.
Verify the process completion and view the generated report.
Note: A message appears to verify the payroll flow. If the process is complete, you can view the report.
Balance Exception Report
The Balance Exception report tracks values that vary for the same balance dimension. The variance
indicates overpayments and underpayments. Generate this report immediately after the Payroll
process so that you can track the potential mistakes that are not tracked as errors. This process is
run immediately after the Payroll or QuickPay processing, or before generating the statutory reports,
such as quarterly or annual reports.
View to identify potentially incorrect payments or amounts withheld.
The prerequisites for running this report are:
Payroll Run should be completed for required payroll period.
Balance Exception should be defined.
Balance Exception Report should be defined.
The procedure is specified as follows:
Report Execution
1. In the Payroll Checklist work area, from the Tasks pane, select the Submit a Process or
Report task.
2. Specify the LDG.
3. Search for and select the Run Balance Exception Report flow pattern
4. Specify the parameters as follows:
Payroll Flow: Identifier for the process that is being run. You can enter a value each time the process is
executed. You can choose any format to describe the payroll flow.
Process Start Date: Start date of the process for which the archiver is run.
Process End Date: Start date of the process for which the archiver is run.
Balance Exception Report: select the balance exception report that is to run.
Payroll: Payroll definition for which payroll is to be run.
Consolidation Group: Select the name of the consolidation group.
Payroll Statutory Unit: Limits the output to a specific PSU.
Tax Reporting Unit: Limits the output to a specific TRU.
Location: Limits the output to a specific Location
Payroll Relationship Group: Limits the output to a predefined group of Payroll Relationships.
5. Click Next
Specify the flow interaction range and schedule the process date and time if required. Review the details before
you submit the process.
6. Click Submit.
Verify the process completion and view the generated report.
Note: A message appears to verify the payroll flow. If the process is complete, you can view the report.
Termination
There are no separate post termination processes for Saudi. Terminated employees are not considered for social
insurance processing in the month of termination unless it is the last day of the month.
Earnings can be paid also after termination. In this case, it is important to check the payroll status of the payee to
be sure that it is included in the payroll run. The possible HR statuses that can be enabled are:
Payroll Eligible - Payee is included in the payroll run.
No Payroll - Payee will not be included in the payroll run.
Process When One Time Element: Payee will only be included in the payroll run if they have a non-
recurring (unprocessed) element entry for the payroll period.
Process When Earning: Payee will only be included in the payroll run if they have an element entry, for
the payroll period, for earning having classifications where Process When Earning option is selected.
In the termination month, gratuity payment is automatically generated, if the employee is eligible. This amount is
added to the employees net pay. Rules for determining the gratuity payment are described gratuity calculation
section.
When a terminated employee is rehired, the employee is treated as a new employee. When the HR user creates a
new Work Term, a check will be made for a Payroll Relationship of the same type and PSU. If one exists, the Last
Standard Earnings Date of the payroll relationship will be validated. If it is greater than the Term start date, the
Work Term will be attached to it. If it is less than the Term start date, a new Payroll Relationship will be generated.
If one does not exist, a new Payroll Relationship will be generated.
The action of termination the employee triggers the automatic creation of an Employee Gratuity Details
calculation card:
The card is created with the calculation component and component details and associations. You can review and
edit the card to enter an override amount for gratuity.
Running Payroll
After verifying that the calculation card is created February 2010 (month when the employee is terminated), payroll
can be run for Payroll Definition ZHRX-SA-V-Monthly Payroll and the following results are generated:
Note that:
Gratuity payment is triggered in line with the amount entered as override.
Social insurance deductions are calculated as zero since we are in the month of termination.
Conclusion
This document focuses on information specific to implementing and using Oracle Fusion HCM in Saudi Arabia.
To read more about these tasks, refer to the documents listed in the Other Information Sources section
Glossary
General Terminology
consolidation group
A grouping of payroll runs within the same time period for which you can schedule reporting, costing, and post-
run processing.
calculation card
A mechanism for capturing values required for calculating payroll deductions at the level of a payroll statutory unit,
tax reporting unit, or payroll relationship. At the payroll relationship level, this is called a personal calculation card.
calculation component
An individual deduction captured on a calculation card. Typically relates to a deduction element for which the
calculation component creates an entry.
flexfield
Grouping of extensible data fields called segments, where each segment is an attribute added to an entity for
capturing additional information.
legal employer
legal entity
An entity is identified and given rights and responsibilities under commercial law, through the registration with the
country's appropriate authority.
obligation.
A means of partitioning payroll and related data. At least one legislative data group is required for each country
where an enterprise operates. Each legislative data group is associated with one or more payroll statutory units.
A legal entity registered to report payroll tax and social insurance. A legal employer can also be a payroll statutory
unit, but a payroll statutory unit can represent multiple legal employers.
Oracle Fusion HRMS (SA): Payroll Copyright 2015, Oracle and/or its affiliates. All rights reserved.
Implementation and Functional Considerations
This document is provided for information purposes only, and the contents hereof are subject to change without notice. This
March 2016
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