Absence Element Setup US WP Final

Oracle Fusion Human Capital Management for
the United States

Absence Management
ORACLE WHITE PAPER | FEBRUARY 2018
Table of Contents
Introduction 1
Absence Management and Payroll 1
Overview of Process 1
High-Level Steps 1
Navigation 2
Rate Definitions 2
Creating an Absence Payment Rate Other than Regular Salary 3
Absence Elements 6
Creating Absence Elements 6
Calculation Information Repository 9
Creating Absence Discretionary Disbursement Earnings Elements 9
Creating Absence Final Disbursement Earnings Elements 9
Elements Created 9
Element Eligibility 10
Costing Absence Elements 11
Derived Factors 11
Eligibility Profiles 12
Absence Fast Formula Configuration 12
Absence Plan Management 13
Creating Absence Plans 13
Absence Plan Options 13
Absence Plan Rules 13
Transferring Absence Information to Payroll 14
US ABSENCE MANAGEMENT
Absence Component Management 15
Absence Types 15
Absence Reasons 15
Absence Categories 15
Absence Patterns 15
Absence Certifications 16
Absence Management Components: How They Work Together 16
Employee Enrollment in Absence Plans 17
Absence Processing and Administration 17
Update Accrual Plan Enrollments Batch Process 17
Calculate Accruals and Balances Batch Process 18
Withdraw Accruals and Balances Process 20
Employee Absence Records 21
Absence Record Entry 21
Absence Calculation Cards 22
Element Entries 24
Payroll Processing 25
Absence Balance Review 25
Appendix A: Setting Different Rates for Absence Payments Other than Regular Salary
25
Appendix B: Customizing Absence Formulas Working Example 26
Defining the Calculation Step 26
Defining the Calculation Factor 27
Modifying the Base Element Processing Formula 27
Appendix C: Building Accrual Band Matrices Examples 29
Example 1: Creating Bands Based on Length of Service 29
Example 2: Creating Bands Based on Location and Length of Service 30
Example 3: Creating a Date-Effective Accrual Matrix Based on Grade Bands 31
Appendix D: Creating Qualification Band Examples 32
Example 1: Single Payment Band for Multiple Length of Service Ranges 33
Example 2: Multiple Payment Bands for a Grade Range 34
Example 3: Payment Bands for Multiple Length of Service & Grade Ranges 34
Appendix E: Defining Absence Plans Worked Examples 36
Example 1: Creating a Vacation Accrual Plan 36
Example 2: Creating a Maternity Qualification Plan 38
Appendix F: Creating Absences for California Sick Pay Rates Worked Example 40
Earnings Balance 41
Hours Balance 42
Rate Definition 43
Absence Element 44
Absence Plan 45
Run Payroll 45
Introduction
This paper outlines the set up tasks for creating absence elements for use in Oracle Fusion Absence
Management for the United States. You can enable the automatic transfer of absence payment
information to Oracle Fusion Global Payroll for processing when setting up your absence plans. The
scope of this paper is for Release 12 Patch Bundle 10 and later releases. This paper assumes that
you have a requirement to include absence payments in balances, such as taxable earnings.
NOTE: Existing Absence elements do not inherit this new functionality and Absences updates. To
utilize this new functionality, you must recreate your Absence elements.
Absence Management and Payroll

Absence Management provides a means for accurate absence administration, tracking, reporting, and payroll
calculations.
Overview of Process
Global absence management gives customers the ability to manage various types of absences.
The majority of the setup for the processing of absences is in the absence management work area. There is an
integration between absence management and payroll. Payroll processing requires specific information, which is
passed from the absences. The payroll process uses this information to calculate the absence payment.
The process consists of the following:
1. You create the absence element using the Manage Elements task. This creates the calculation components
the Calculation Information Repository (CIR) requires.
2. You define the absence plan using the Manage Absence Plans task and select the absence element within the
plan itself.
3. When an employee enters their absence through self-service, or you enter an absence for an employee using
the Manage Absence Records task, the task creates the person’s absence calculation card and links the
absence plan to the calculation component on the person's calculation card.
4. Use the Manage Absence Records task to approve the absence. This transfers the daily and summary
breakdown information to Oracle Fusion Global Payroll.
5. You process the payroll that includes these absence entries and view the resulting absence balances on the
person's Statement of Earnings. After you process and archive payments, you can view the resulting absence
balances on the person's payslip.
High-Level Steps
The majority of the setup for the processing of absences is in the Absence Management work area. There is an
integration between Absence Management and Payroll Calculations. In an effort to help outline the steps included
to configure and process absences in the United States, the high-level list of all the absence and payroll steps
involved are included in the table below.
Procedure Action
Creating Rate Definitions Create rate definitions to use in calculating absence payments, liability balance calculations,
and salary reduction calculations.
1 | US ABSENCE MANAGEMENT
Creating Absence Elements Create an absence element for each absence plan that transfers absence payment
information for payroll processing.
Also provides the option to automatically create the Final Disbursements and Discretionary
Disbursements elements.
Creating Derived Factors Create derived factors to define how to calculate certain eligibility criteria that change over
time.
Creating Eligibility Profiles Create eligibility profiles to define criteria that determine whether a person qualifies for
objects that you associated with the profile.
Creating Absence Plans Create an absence plan, and ensure the following is defined for payroll:
 Select the Transfer absence payment information for payroll processing check
box.
 Select the element for the plan in the Element field.
Creating Absence Types Create absence types, and associate them to the absence plans.
Enrolling Employees in Absence Plans Enroll employees in the absence plan, if explicitly required.
Processing Accruals If an employee is enrolled in an accrual plan, you must run the accrual process.
Creating Employee Absence Records Record an absence for the employee. This transfers the absence information to Oracle
Fusion Global Payroll, assuming the absence is approved and the option to transfer
information to payroll is configured.
Processing Payroll Process the payroll that includes the absence entries.
Viewing Absence Balances View the employee’s absence and accrual balances in the SOE, payslip, check advice, and
reports.
Navigation
Use the following tasks located in the related work areas to configure objects for processing absences in payroll:
Object Set Up Task Work Area
Rate Definition Manage Rate Definitions Payroll Calculation
Absence Element Manage Elements Payroll Calculation
Derived Factors Manage Derived Factors Absence Administration
Eligibility Profile Manage Eligibility Profiles Absence Administration
Absence Plan Manage Absence Plans Absence Administration
Absence Types Manage Absence Types Absence Administration
Rate Definitions
Rate definitions are used in the calculation of your:
» Absence payment amounts

» Liability balances
» Salary reduction amounts
Use the Manage Rate Definitions task in the Payroll Calculation work area to create rate definitions.
Creating an Absence Payment Rate Other than Regular Salary
For cases where your absence payment is at a different rate than your salary, you must first define a rate definition
before defining your absence element. To set up a rate definition:
1. In the Payroll Calculation work area, start the Manage Rate Definitions task.
2. Click Create.
3. Select the Derived Rate category.
4. Enter an effective date, such as 2010-01-01.

5. Select a US legislative data group (LDG).
6. Click OK.
7. Specify the following basic information:
Value Description
Name Name of the rate definition.
Short Name Short name of the rate definition.
Periodicity Default is Annually.
Periodicity Conversion Default is Standard Rate Annualized.

Formula
Factor Rule Select Value.
Name Enter a value of 0.75 (as an example).
Currency Currency for the rate definition.
8. Create a rate contributor:
a. Click Create.
b. Select Base Rate for the contributor type.
c. Click OK.
d. Specify the following:
Value Description
Add or Subtract Select Add.
Employment Level Select Payroll Assignment.
Periodicity Select Annually.
Factor Rule Select Value.
Factor Value Enter a rate that is a percentage of the base salary rate. For
example, to specify 75 percent of the base salary rate, enter
0.75.
e. Click Save and Continue.

9. Click Submit.
See Appendix A for an example of how to use this rate when setting up your absence element.
Absence Elements
Create an absence element for each absence plan that transfers absence payment information for payroll
processing. When you create the plan, you must select the absence element on the Entries and Balances tab of the
Create Absence Plan page. This links the absence element to the absence plan.
Before creating a new absence element, you must decide which secondary element classification and what types of
absence information that you want transferred to payroll:
» Secondary classifications vary by country or territory, but may include Maternity, Sickness, Vacation, and so on.
» The table below explains the types of absence information that you can transfer to payroll:
Type Examples
Accrual Balances A vacation accrual plan that isn’t processed through payroll. The leave isn’t shown separately
on the statement of earnings.
Accrual Balances and Absences A vacation accrual plan that is processed through payroll. The leave is shown separately on
the statement of earnings.
Qualification Absences A maternity plan that is processed through payroll. The leave is shown separately on the
statement of earnings.
No Entitlement Absences A no entitlement leave plan that is processed through payroll. The leave is shown separately
on the statement of earnings.
Creating Absence Elements

To create an absence element:
1. In the Payroll Calculation work area, start the Manage Elements task.
2. Click Create.
3. Select a US LDG.
4. Select Absences as the primary classification.
5. Select a secondary classification based on the type of absence you are creating.
6. Click Continue.
7. Specify the following basic information:
Value Description
Name Name of the absence element.
Reporting Name Name of the absence element as displayed on reports.
Description Description of the absence element.
Effective Date Effective date of the absence element.
Input Currency Currency of the absence element.
8. Select the calculation units (hours or days).

NOTE: If you select Days, and the absence payment for this element is subject to FLSA rules, you must create
a fast formula for conversion to hours. You must also select the work units conversion rule related to these
calculation units.
9. Select the types of absence information that you want transferred to payroll:
» Accrual Balances
» Accrual Balances and Absences
» Qualification Absences
» No Entitlement Absences
10. Click Next.
11. Specify the following additional details:
a. Select the appropriate absence payment option for reducing regular earnings for salaried employees:
Payment Option Description
Reduce regular earnings by Does not require a rate definition.

absence payment
Select rate to determine absence Select this option if your absence payment is at a different rate than your salary
deduction amount reduction.
See Appendix A for a worked example.
b. Select whether to calculate the absence liability. If you select Yes, do one of the following:
» Select the liability rate you defined through the Manage Rate Definitions task. For further information,
see the previous section, “Creating an Absence Payment Rate Other than Regular Salary”.
» Provide an empty value to default the rate calculation based on the basic salary.
c. Select the appropriate balance payment options for:
» Balance payment when enrollment ends (Final Disbursement). If you select Yes, you must select the
rate calculation and the taxation method.
» Partial payment of the balance (Discretionary Disbursement). If you select Yes, you must select the
rate calculation and the taxation method.
12. Click Next.
13. Review the options you selected.
14. Click Submit.
Calculation Information Repository
When you define the absence element, the Manage Elements task also creates the required calculation
components in the CIR.
Creating Absence Discretionary Disbursement Earnings Elements

Some absence plans support discretionary disbursement for unused absence balances. In these cases, you can
elect to pay the discretionary disbursement by answering Yes to the partial payment of balance question when
creating your base absence element. You can also select which payment rate and which taxation method to use
with this discretionary payment.
Creating Absence Final Disbursement Earnings Elements

Some absence plans allow final disbursements or pay out at employment termination. In these cases, you can elect
to pay the final disbursement by answering Yes to the enable balance payments when enrollment ends question
when creating your base absence element. You can also select which payment rate and which taxation method to
use with this final payment.
Elements Created
During definition of the elements described in the previous sections, the element template automatically creates
some or all of the following elements, depending on the options you selected:
Element Name Purpose
<Absence name> Element you associate with the absence plan.
<Absence Name> Accrual Shadow elements:

<Absence Name> Accrual Calculator  Get absence accrual information from Oracle Fusion Absence
<Absence Name> Accrual Result Management
 Process liability
<Absence Name> Entitlement Shadow elements:

<Absence Name> Entitlement Calculator  Get absence accrual information from Oracle Fusion Absence
<Absence Name> Entitlement Result Management
 Process absence payments and deductions
<Absence Name> Entitlement Retro Shadow element used to process absence payments and deductions in
retroactive processing.
<Absence Name> Discretionary Disbursement Shadow elements:

<Absence Name> Discretionary Disbursement Calculator  Get partial payment information from Oracle Fusion Absence
<Absence Name> Discretionary Disbursement Result Management
 Process these disbursements
<Absence Name> Discretionary Disbursement Retro Shadow element used to process partial payment disbursements in
<Absence Name> Final Disbursement Shadow elements:

<Absence Name> Final Disbursement Calculator  Get final payment information from Oracle Fusion Absence
<Absence Name> Final Disbursement Result Management, such as upon employee termination
 Process these disbursements
<Absence Name> Final Disbursement Retro Shadow element used to process final payment disbursements in
Element Eligibility
You must create element eligibility for the base, accrual, and entitlement elements. For the elements you define
through the element template, you can do this during element definition. For the automatically-generated shadow
elements, you must use the Manage Elements task:
1. Search for and select the appropriate element.

2. In the Element Overview region, select the Element Eligibility node.
3. Select Create Element Eligibility from the Actions menu.
4. Define the element eligibility.

5. Click Submit and Done.
For an example of elements that require you creating eligibility, see the highlighted items in the following screen
shot:
Costing Absence Elements
When setting up costing for absence elements, you may have to create costing element eligibility for the following
payment elements:
» Base absence entitlement, entitlement results, and entitlement retroactive elements

» Discretionary disbursement, disbursement result, and disbursement retroactive elements
» Final disbursement, disbursement result, and disbursement retroactive elements
You must determine how to cost element eligibility records, including which type of costing to apply and which input
value to cost. You determine which account numbers to specify for the cost account segments, such as the natural
account, and which offset account balances the cost account.
For further information, see Global Human Resources Payroll Costing Guide (1918574.1) on My Oracle Support.
Derived Factors
Derived factors define how to calculate certain eligibility criteria whose values change over time, such as a person's
age or length of service. You add derived factors to eligibility profiles and then associate the profiles with objects
that restrict eligibility.
Using the Manage Derived Factors task, you can define six types of derived factors:
» Age
» Length of service
» Combination of age and length of service
» Compensation
» Hours worked
» Full-time equivalent
See Appendix C and D for working examples of Accrual Bands and using the Manage Derived Factors task.
Eligibility Profiles
Create eligibility profiles to define criteria that determine whether a person qualifies for objects that you associate the
profile with. An eligibility profile is a user-defined set of criteria used to determine whether a person qualifies for a
benefits offering, variable rate or coverage, compensation plan, checklist task, or other object for which eligibility
must be established. You can associate eligibility profiles with objects in a variety of business processes.
Criteria defined in an eligibility profile are divided into categories:
Category Description
Personal Includes gender, person type, postal code ranges, and other person-specific criteria.
Employment Includes assignment status, hourly or salaried, job, grade, and other employment-specific criteria.
Includes age, compensation, length of service, hours worked, full-time equivalent, and a combination of age
Derived factors
and length of service.
Other Includes miscellaneous and user-defined criteria.
Related coverage Includes criteria based on whether a person is covered by, eligible for, or enrolled in other benefits offerings.
Some criteria, such as gender, provide a fixed set of choices. The choices for other criteria, such as person type, are
based on values defined in tables. You can define multiple criteria for a given criteria type.
Absence Fast Formula Configuration

The calculation information repository stores absence information such as payroll absence entitlements. You use
this information when customizing any of the absence formulas and accessing the value definitions in those base
absence formulas.
Use the Manage Payroll Calculation Information task to customize your absence formulas, such as payroll absence
entitlements. For example, use this task to customize the absence entitlement base formula and access its value
definitions.
To customize an absence formula, you must first understand the processing order the system uses. During payroll
processing, the absence entitlements are processed in the following order:
1. Base element
2. Calculator element
3. Result element
These elements use the following naming pattern:
Classification Base Element Calculator Element Result Element
Absence <Absence Element Name> <Absence Element <Absence Element

Entitlement Name>_Entitlement Calculator Name>_Entitlement Result
For a worked example, see Appendix B.
For further information, see Oracle Fusion Absence Management: Fast Formula Reference Guide (2065671.1) on
My Oracle Support.
Absence Plan Management
The absence plan captures and provides information to the payroll process to facilitate the payment of absences.
The plan determines:
1. If and how entitlements are granted to an employee.

2. Who is eligible to participate in the plan.
3. How the payment for entitlements are calculated and paid.
Creating Absence Plans

Use the Manage Absence Plan task in the Absence Administration work area to create absence plans. Creating
your plans defines your rules for accruals and entitlements, and there are multiple strategies involved.
For further information, see Global Human Resources Cloud Implementing Absence Management on Oracle Cloud
Help Center.
See Appendix C, D, E, and F for various plan matrix examples and plan working examples.
NOTE: You must have the role of Human Resources Manager to perform these operations.
Absence Plan Options

The following plan options are available through the Manage Absence Plans task in the Absence Administration
work area:
Plan Type Description
Accrual Time earned by an employee on a periodic basis.
Agreement Time agreed upon between the employer and employee.
Compensatory A variation of an accrual plan where units worked form the basis of
the accrual.
No Entitlement A plan that has neither accrual nor entitlements defined. Commonly
used to track unpaid absences.
Qualification Employee’s entitlement to time off is not earned on a periodic basis

but is granted to them. Commonly used for maternity, jury duty,
military, and so on.
Absence Plan Rules

When creating absence plans, consider the following:
Plan Rules Description
Terms and Frequencies Identifies the period of time during which employees accrue time.
There are various term types:
 Accrual Plans and No Entitlement Plans:
Calendar year: Accrual term starts on the month, day, and year
you select and then restarts the next year on the same day.
Anniversary year: Accrual term starts on the hire date and then
restarts on the employee’s anniversary.
 Qualification Plans:
Absence duration: Determines the duration of the plan.
Calendar year: Accrual term starts on the month, day, and year
you select and then restarts the next year on the same day.
Rolling backward: Calculates the absence entitlement based on
the total duration of absences for a specific time period that
precedes the absence start date.
Rolling forward: Calculates absence entitlements based on the
first date an employee’s absence begins and calculates the end
date by adding the term duration to the start date.
Plan eligibility Associates an eligibility profile to the plan in order to determine what
workers are enrolled in that plan. An eligibility profile defines criteria
used to determine whether a person qualifies for certain absence
plans.
Enrollment and Termination Determines:

 When to enroll an employee in the plan
 When to unenroll a terminated employee
Waiting periods For an accrual plan, defines whether an employee accrues time only
after a specified amount of time lapses.
Vesting periods For an accrual plan, defines if an employee is able to use any accrued
time after a specified amount of time lapses.
Plan limits For an accrual plan, identifies the type of limits:

 Carryover: Maximum amount of time an employee can carry
over to the next cycle
 Ceiling: Maximum amount of time an employee can accrue
Transferring Absence Information to Payroll

Payroll requires specific information to process absence payments. To process absence payments during payroll
processing, you must configure your absence plan to pass the absence information to payroll. You do this on the
Entries and Balances tab of the Manage Absence Plan task. Select the Transfer absence payment information
for payroll processing option, and select the absence element you defined previously during the Creating Absence
Elements steps.
Absence Component Management
Implementing the absence management policy of your enterprise involves configuring the following absence
components:
» Types
» Reasons
» Categories
» Patterns
» Certifications
Absence Types
When you create an absence type, such as sick leave, you include rules to determine when users record or manage
an absence of that type.
For example, you can restrict workers so that they can record absences only of a particular duration. An alert
appears if the entered duration exceeds the maximum value.
Decide which fields or sections you want to show or hide for specific user roles when they record or approve a
specific absence type.
Use the Manage Absence Types task, in the Absence Administration work area to create absence types.
Absence Reasons
You have the option to create absence reasons for selection when you or an employee schedules an absence.
Absence reasons are independent of absence types. You can use the same reason for multiple absence types.
When you create an absence type, you associate the valid reasons with the type.
Use the Manage Absence Reasons task, in the Absence Administration work area to create absence reasons.
Absence Categories
You have the option to create absence categories to group absence types for reporting and analysis. For example,
you can create an absence category called Family Leave and associate with it absence types, such as maternity,
paternity, and child care.
Use the Manage Absence Categories task in the Absence Administration work area to create Absence Categories.
Absence Patterns
An absence pattern contains a predefined set of rules that you can use as a starting point to create an absence
type. When you create an absence type, you must associate it with any of the following predefined patterns:
» Illness or injury
» Childbirth or placement
» Generic absence
For example, you can select the Generic absence pattern to create an absence type to schedule vacation time using
the time accrued under a vacation accrual plan.
The pattern you select determines:
» Whether special fields appear on the absence type pages
» The options available to display and process various aspects of absence recording
For example, the Illness or Injury pattern displays a field for selecting whether the absence type applies for childbirth
or adoption placement.
Absence Certifications
You have the option to create certification requirements for absences that require documentation to authorize an
absence. For example, in case of an absence due to illness, set up a requirement that workers must submit a
doctor's certificate within a stipulated period of time. This ensures they receive full payment for the absence
duration.
Use the Manage Absence Certifications task in the Absence Administration work area to create absence
certifications.
Absence Management Components: How They Work Together

The following table depicts how the absence management components described earlier all work together to create
a cohesive absence management policy for your organization.
Component Location in the Absence Administration Work Area
Absence types Use the Manage Absence Types task to create absence types.
Absence categories Use the Manage Absence Categories task to create absence
categories and associate them with absence types.
Absence patterns Review these settings on the Display Features tab when you create
an absence type.
Absence plans Use the Manage Absence Plans task to create absence plans.
Absence reasons Use the Manage Absence Reasons task to create absence reasons.
Absence certifications Use the Manage Certifications task to set up a requirement. Then
associate the requirement as an action item with an absence type,
so that every absence associated with the absence type is subject to
that requirement.
The following figure illustrates how the absence management components fit together:
Employee Enrollment in Absence Plans
You must enroll employees in the absence plan before you can record absences for those employees. If you
created the plan prior to the employee being hired, then they are enrolled in the accrual and qualification plans
automatically if they meet the plans' requirements. However, if you created the plan after the employee is hired, you
must manually enroll them in the appropriate plans.
Use the Manage Absences task in the Person Management work area to enroll employees in the absence plan or
verify automatic enrollment into a plan. See the next section for detailed information.
Absence Processing and Administration

Administering absences involves running the following processes:
1. Update Accrual Plan Enrollments

2. Calculate Accruals and Balances
3. Withdraw Accruals and Balances
Update Accrual Plan Enrollments Batch Process

You must first update enrollments, such as new hire, termination, and transfer events for multiple workers, using the
Schedule and Monitor Absence task in the Absence Administration work area. Then you run the Update Accrual
Plan Enrollments batch process.
To run this process on individual employees:

1. Start the Manage Absence Records task from the Person Management work area.
2. Navigate to the Plan Participation section.
3. Select the Enrollments and Adjustments tab.
4. Select the appropriate option.
This process:
1. Determines a worker’s plan eligibility
2. Enrolls an eligible worker in an accrual plan
3. Terminates the enrollment of ineligible workers
Run this process on a daily basis to determine plan eligibility for multiple workers. To do so, start the Update
Accrual Plan Enrollments batch process from the Schedule and Monitor Absence Processes task in the Absence
Administration work area. Specify the following:
Parameter Description
Effective Date Evaluates and updates plan enrollments that are effective on the
specified date.
Person Limits processing to the selected worker.
Business Unit Limits processing to workers in the selected business unit.
Legal Employer Limits processing to workers assigned to the selected legal

employer.
Person Selection Rule Limits processing to specific workers that you include in the person
selection rule. Use the Person Selection formula type to include
specific workers who meet special requirements for the absences
batch process. You define the formula using the Manage Fast
Formulas task and select that formula in this field.
Absence Plan Limits processing to enrollments for only the selected accrual plan.
If you don’t select an absence plan, you must select at least one of
the following parameters:
 Person
 Business Unit
 Legal Employer
 Person Selection Rule
Calculate Accruals and Balances Batch Process

If you have an accrual plan, you must first generate accrual details and calculate balances for multiple workers using
the Schedule and Monitor Absence task in the Absence Administration work area. Then you run the Calculate
Accruals and Balances batch process.
To run this process on individual employees:
1. Start the Manage Absence Records task from the Person Management work area.
2. Navigate to the Plan Participation section.
3. Select the Accruals tab.
4. Select the appropriate option.
This process:
1. Calculates the accrual balance for each active enrollment
2. Updates plan balances
3. For absence plans configured to do so, transfers the information to Oracle Fusion Global Payroll
You enable this transfer by selecting the Transfer Absence Payment Information for Payroll Processing option
on the Create Absence Plans page. If you do not select this option, the absence information is not available for
payroll processing.
Run this process at regular intervals. To do so, start the Calculate Accruals and Balances batch process from the
Schedule and Monitor Absence Processes task in the Absence Administration work area. Specify the following:
Effective Date Calculates the accrual balance for only those plans that are effective
on the specified date.
A plan enrollment must exist for the worker as of this date.
If you leave the Absence Plan field empty, the process calculates
the accrual balance for multiple plans with differing accrual periods
on the effective date.
If you select an absence plan, the process calculates the accrual
balance for the accrual period of the selected plan as of the effective
date.

If you select a person but not an absence plan, the process
calculates the accrual balance for all plans in which the worker has
an active enrollment.
If you select a person and an absence plan, the process calculates
the accrual balance for only the selected plan, if the worker has an
active enrollment for that plan.
Business Unit Limits processing to workers in the selected business unit.

employer.
Person Selection Rule Limits processing to specific workers that you include in the person
selection rule. Use the Person Selection formula type to include
specific workers who meet special requirements for the absences
batch process. You define the formula using the Manage Fast
Formulas task and select that formula in this field.
Payroll Limits processing to workers assigned to the selected payroll.
Payroll Relationship Group Limits processing to workers with payroll employment records
included in the selected group.
Define payroll relationship groups to run the process for a group of
people within a payroll or a group of people in multiple payrolls.
Changes Since Last Run Limits processing to workers with either payroll or assignment
updates or corrections since the last process run.
If you select:
 Payroll events since last run
The process calculates the accrual balance for workers whose
payroll records have changed since the last scheduled run.
For example: A worker schedules 5 days absence on January
25, and you run the process on January 26. Due to an
emergency, the worker returns to work on January 29, after an
absence of only 4 days. The worker updates the absence
record to reflect an absence of 4 days instead of 5. If you
schedule the process again on February 1 and select Payroll
events since last run, it generates the updated accrual
balance for the worker.
 HR Assignment changes since last run
The process calculates the accrual balance for workers whose
assignment record last updated date is later than the last
scheduled run.
Example: The last scheduled run was on January 1 and you
update a worker's assignment on January 2. If you schedule
the process again on January 3 and select HR Assignment
changes since last run, it generates the updated accrual
balance for the worker.
Legislative Data Group Limits processing to a group of one or more absence types that are
associated with the legislative group that you select
Absence Plan Limits processing to calculating accrual balances for only the
selected accrual plan. When you select this field, the Repeating
Period field appears.
If you don't select an absence plan, you must select at least one of
the following parameters:
 Legislation
 Business Unit
 Legal Employer
 Person Selection Rule
 Person
 Payroll
 Payroll Relationship Group
 Changes Only
The process calculates accrual balances for each worker selected
by the other parameters.
Repeating Period Limits processing to the selected accrual period for the selected
plan. This field appears only when you select a value in the
Absence Plan field.
Withdraw Accruals and Balances Process

If an employee becomes ineligible to participate in an accrual plan due to a status change, or an employee was set
up with an incorrect plan, you can resolve this by:
» Manually withdrawing and updating worker accrual balances

» Deleting enrollments
To make these corrections:
1. Start the Withdraw Accruals and Balances process from the Schedule and Monitor Absence task in the
Absence Administration work area.
2. Specify the following:
Effective Date Withdraws the accrual balance for only those plans that are
effective on the specified date.
Processing Option Limits processing to the following processing options:

 Withdraw accruals and balances
 Enrollment deletion

employer.
Person Selection Rule Limits processing to specific workers that you include in the
person selection rule. Use the Person Selection formula type
to include specific workers who meet special requirements for
the absences batch process. You define the formula using the
Manage Fast Formulas task and select that formula in this field.
Payroll Limits processing to workers assigned to the selected payroll.
Payroll Relationship Group Limits processing to workers with payroll employment records
included in the selected group.
Define payroll relationship groups to run the process for a
group of people within a payroll or a group of people in multiple
payrolls.
Legislative Data Group Processes only those absence types that are associated with
the legislative data group you select.
Absence Plan Withdraws accrual balance for only the selected accrual plan.
Employee Absence Records

Once you have finished creating your absence elements, plans, types, and other absence components required by
your organization, and have confirmed enrollment, you can create absence records for your eligible employees.
Absence Record Entry

There are multiple ways to perform absence transactions, as noted below:
» The employee can perform the entry himself via Self Service, if the customer has allowed it.
» The manager can perform the entry for his reports.
» The administrator can perform the entry.
The following images illustrate how an administrator would create the absence entry:
Absence Calculation Cards
When you create an absence record, the task automatically transfers the absence information to payroll. It creates
the Absences calculation card, along with the components that hold the absence information. The employee’s
calculation card contains:
Calculation Components Description
Summary Record Contains information such as the start and end date of the absence,
the absence rate, and the units.
Daily Breakdown Shows the absence date and any factor to be applied, such as the
percentage to use when calculating the absence payment.
The absence entitlement component creates element entries for the transaction to be processed in the payroll.
NOTE: This assumes the absence was approved and the option to transfer to payroll was configured on the
absence plan.
In the following example, the employee’s absence calculation card that was automatically created is displayed.
The generated calculation components are also displayed:
The following illustrates the entitlement record that displays the calculation values:
The following illustrates the accrual calculation component with the unit accrued for the employee:
Element Entries
When you create an absence record for an employee, element entries are also created for payroll processing.
The following illustrates the accrual and entitlement element entries:
Payroll Processing
Once the information is transferred to payroll and the entries are generated, you can process the payroll that
includes the absence entries and view the resulting absence balances on the person's Statement of Earnings.
Absence Balance Review

Once you have processed and archived payroll, the employee’s absence and accrual balances are displayed on the
employee’s SOE, payslip, check advice, and reports.
Appendix A: Setting Different Rates for Absence Payments Other than Regular
Salary
In situations where you want your payment to be different than your regular salary, select a different rate for the
salary reduction amount than the payment amount. For example, to pay sick pay to salaried non-exempt employees
at 75 percent of the normal rate:
1. Set up a sick pay rate definition.

Configure the sick payment at 75 percent of the regular salary.
2. During absence element definition:

a. For How do you want to reduce earnings for employees not requiring a time card?, choose Select
rate to determine absence deduction amount.
b. For the Rate to Determine Absence Deduction Amount, leave this field blank. By leaving this field
blank, the payroll calculation automatically reduces the salary by the regular pay rate.
c. For Which rate should the absence payment calculation use?, select your defined sick pay rate from
step 1 (75 percent rate).
Appendix B: Customizing Absence Formulas Working Example
To customize absence formulas, such as payroll absence entitlements, you must customize the absence entitlement
base formula and access its value definitions.
For example, to add additional logic in the formula to fetch the entitlement factor value, you must:
1. Define a calculation step.

2. Define a calculation factor.
3. Modify the base element processing formula.
Defining the Calculation Step

To create calculation step:
1. Start the Manage Payroll Calculation Information task from the Payroll Calculation work area.
2. Search for <Absence Name>.
3. Click Edit.
4. Expand the Calculation Overview tree by clicking Expand.
5. Click All Calculation Steps.

6. Click Add Row to add a calculation step, such as Entitlement Factor Base Element.
NOTE: If you save the calculation step with a mistake in it, such as a misspelling, do not correct it. You must
create a new step. Do not delete the incorrect calculation step.
7. For each calculation step, enter the name and effective date.
8. Click Submit.
Defining the Calculation Factor
Calculation factors associate elements with calculation steps and calculation value definitions. For absence
payment management, you must create the following association:
Element Calculation Step Calculation Value Definition
<Absence Name> Entitlement Entitlement Factor Base Element Entitlement Factor
To create the calculation factor:

1. Start the Manage Component Group Rules task from the Payroll Calculation work area.
2. Search for Absences as the component group.
3. Click Absences.
4. Expand the Calculation Component Group Overview tree by clicking Expand.
5. Expand the Calculation Factors node in the tree.
6. Select No References under Calculation Factors.
7. Click Create in the Calculation Factors section.

8. Select the absence element for Create Calculation Factor.
9. Specify an effective date.
10. Leave the calculation method blank.
11. Select the calculation step that you previously defined.
12. Select the calculation value definition.
13. Click OK.
14. Click Submit.
Modifying the Base Element Processing Formula

Perform the following steps to modify base element processing formula:
1. Start the Manage Fast Formulas task from the Payroll Calculation work area.
2. Search for and select the Absences Entitlement base formula.
3. Click Edit, then Correct.
4. In the Formula Text region, add the following formula code before the return statement:
/*********************** Begin Formula Section : fetch value **********************/
/********************************** Comment ***************************************/
/* Getting value of Entitlement Factor value definition override */
/******************************** End Comment *************************************/
l_abs_factor = 0
l_abs_factor_uom = 'NULL'
l_comp_id = DEDUCTION_COMPONENT_BY_EE
CHANGE_CONTEXTS (DIR_CARD_COMP_ID = l_comp_id)
(
change_contexts(PART_NAME = 'Entitlement Factor')
(
call_formula('CALL_CALC_VALUE',
1 > 'BASE',
l_abs_factor < 'DED_AMOUNT' default 1,
l_abs_factor_uom < 'OUT_UOM' default 'NULL'
)
)
)
/************************ End Formula Section : fetch value ************************/
5. Click Submit.
6. Click Compile.
Appendix C: Building Accrual Band Matrices Examples

An accrual band is a grouping of calculated accruals based on common criteria within each group. Use an accrual
band matrix to build criteria using various factors, such as length of service, location, or grade. To build your
absence plan accrual band matrix:
1. Start the Manage Derived Factors task in the Absence Administration work area.
2. Click the appropriate tab, depending on what you are trying to do.
3. Click Create.
The following are some examples.
Example 1: Creating Bands Based on Length of Service

You want to create two accrual bands based on worker length of service, as shown in the following table:
Maximum
Band Sequence Length of Service Accrual Rate Ceiling
Carryover
1 Less than 5 years 15 15 45
2 Greater than or equal to 5 20 15 60

years
To create the bands:

1. Use the Manage Derived Factors task in the Absence Administration work area to create the following length of
service derived factors:
» Length of service less than 5 years
» Length of service greater than or equal to 5 years
2. Click the Length of Service tab.
3. Click Create.
4. Name your factor “Less than 5 Years”.
5. Select the Years unit of measure.
6. Select the following range of values:
» Greater than or Equal to Length of Service = 0
» Less than Length of Service = 5
7. Select Date of Hire as the period start date rule.
8. Select As of event date as the determination rule.
9. Repeat these steps for the “Greater than or equal to 5 Years” band. Use 5 and blank for the range values.
10. Start the Manage Absence Plans task in the Absence Administration work area.
11. Click Create.
12. Enter your effective date, and select an Accrual plan type.
13. Click Continue.
14. Set up your general information on the Plan Attributes tab, and click the Accrual tab.
15. Select the Matrix accrual definition.
16. Change the ceiling rule and carryover rule to Include in Matrix.
17. In the Accrual Matrix section, click Create.
18. For the first band:
a. Enter 1 for the sequence.
b. Start the Expression Builder.
c. Click the Derived tab.
d. Expand Length of Service, and select Less than 5 years.
e. Copy the content preview line into the Expression field.
f. Click OK.
g. Enter 15 for the accrual rate.
h. Enter 45 for the ceiling.
i. Enter 15 for the carryover limit.
19. Repeat for the second band, using the appropriate values:
» Sequence: 2
» Expression Builder: Greater than or equal to 5 years
» Accrual Rate: 20
» Ceiling: 60
» Carryover limit: 15
Example 2: Creating Bands Based on Location and Length of Service

You want to create accrual bands of varying length of service for workers who belong to specific geographic
locations, as shown in the following table:
Length of Maximum
Band Sequence Location Accrual Rate Ceiling
Service Carryover
1 California Less than 5 years 15 15 45
2 California Greater than or equal 20 15 60

to 5 years
3 New York Less than 3 years 10 10 30
4 New York Greater than or equal 15 15 45

to 3 years
service derived factors for the specific geographic locations:
» California Length of service less than 5 years
» California Length of service greater than or equal to 5 years
» New York Length of service less than 3 years
» New York Length of service greater than or equal to 3 years
3. Click Create.
4. Name your factor “California Less than 5 Years”.
7. Select the Date of Hire period start date rule.
8. Select the As of event date determination rule.
9. Repeat these steps for the remainder of the groups using the appropriate values from the chart above.
11. Click Create.
12. Enter your effective date, and select an Accrual plan type.
13. Click Continue.
18. For the first band:
c. Click the Entities tab.
d. Expand Person, and select Location.
f. Add the name of your California location next to [Person Location] and then enter AND.
g. Expand Length of Service, and select California Less than 5 years.
h. Copy the content preview line into the Expression field.
i. Click OK.
Your expression should look like this:
j. Enter 15 for the accrual rate.

k. Enter 45 for the ceiling.
l. Enter 15 for the carryover limit.
19. Repeat these steps for the remaining bands using the appropriate values from the chart above.
Example 3: Creating a Date-Effective Accrual Matrix Based on Grade Bands

In this example, your enterprise wants to change its leave policies every year in accordance with government
regulations, as shown in the following table:
Effective Start Maximum
Band Sequence
Date Grade Range Accrual Rate Carryover Ceiling
1 April 1, 2014 A1 - A3 15 15 45
2 April 1, 2014 A4 - A6 20 15 60
3 April 1, 2015 A1 - A3 20 20 30
4 April 1, 2015 A4 - A6 25 15 40
To create the matrix:

2. Click Create.
3. Specify an effective date of April 1, 2014, and select a plan type of Accrual.
4. Click Continue.
9. Create band 1 and band 2 using the following expressions:
Band Sequence Expression
1 [Person.Grade] >= "A1" AND [Person.Grade] <= "A3"

The person.grade attribute is on the Entities tab in the Expression
Builder dialog box.
10. Enter the appropriate values for the Accrual Rate and Ceiling and Carryover Limit.
11. Save your work.
12. Set the session effective date to April 1, 2015.
13. Create band 3 and band 4 using the same expressions that you used for band 1 and band 2:
14. Enter the appropriate values for the Accrual Rate and Ceiling and Carryover Limit.
15. Save your work.
Appendix D: Creating Qualification Band Examples

Use qualification bands to determine the payment percentages that workers receive for specific time periods during
a long leave of absence. Use employment criteria such as length of service, grades, and other factors to filter
workers. The following examples show various types of bands that you can define in the Qualification Band Matrix.
To build your absence plan qualification band matrix:

1. Start the Manage Derived Factors task in the Absence Administration work area.
2. Click the appropriate tab, depending on what you are trying to do.
3. Click Create.
The following are some examples.
Example 1: Single Payment Band for Multiple Length of Service Ranges

You want to create a single payment band for workers who have completed the following years of service:
Years of Service Percentage of Pay Days of Absence
5 - 10 75 10
11 – 20 75 20
» Length of service greater than or equal to 5 years and less than 10 years
» Length of service greater than or equal to 10 years and less than 20 years
3. Click Create.
4. Name your Factor “5 to 10 Years”.
9. Repeat these steps for the “11 to 20 Years” band (using 11 and 21 for the range values in step 6).
11. Click Create.
12. Enter your effective date, and select a Qualification plan type.
13. Click Continue.
14. Set up your general information on the Plan Attributes tab, and click the Entitlements tab.
15. Select a Matrix entitlement definition.
16. In the Qualification Band Matrix section, click Add.
17. For the first band, enter the following:
d. Expand Length of Service, and select 5 to 10 Years.
f. Click OK.
» Sequence: 2
» Expression Builder: 11 to 20 Years
19. For each band you create in the Qualification Band Matrix section, create band details in the Qualification
Details section.
The following table shows the band details you must create for Band 1, which you created for workers that have
completed between 5 and 10 years of service:
Band Sequence Detail Name Duration Payment Percentage
1 75 percent up to 10 days of 10 75
absence
The following table shows the band details you must create for Band 2, which you created for workers that have
completed between 11 and 20 years of service:
2 75 percent up to 20 days of 20 75
absence
Example 2: Multiple Payment Bands for a Grade Range

You want all workers who belong to grade A1 and above to receive:
» 100 percent of pay for up to 10 days of leave

» 75 percent of pay for up to a further 15 days of leave
The following table shows the band information you create using the expression builder in the Qualification Band
Matrix section:
1 [Person.Grade] >= "A1"

The person.grade attribute is on the Entities tab in the Expression
Builder dialog box.
The following table shows the band details that you must create for Band 2 in the Qualification Details section:
1 100 percent pay up to 10 days of 10 100

absence
2 75 percent pay for the next 15 15 75

days
Example 3: Payment Bands for Multiple Length of Service & Grade Ranges
In this example, you want to establish the following length of service and pay grade relationship for your workers:
Length of Service Grade Payment Percentage
Less than 5 years N/A To be eligible for:

 75 percent of pay for up to 10 days of
absence
 50 percent of pay for a further 15 days
of absence
Greater than or equal to 5 years A1 To be eligible for:
 Full pay up to 10 days of absence
 75 percent of pay for a further 15 days
of absence

1. Use the Manage Derived Factors task in the Absence Administration work area create the following length of
» Length of service less than 5 years
» Length of service greater than or equal to 5 years
2. Click on the Length of Service tab.
3. Click Create.
4. Name your factor “Less than 5 Years”.
9. Repeat these steps for the “Greater than 5 Years” band, using 5 and blank for the range values.
11. Click Create.
12. Enter your effective date, and select a Qualification plan type.
13. Click Continue.
14. Set up your general information on the Plan Attributes tab, and click the Entitlements tab.
15. Select the Matrix entitlement definition.
16. In the Qualification Band Matrix section, click Add.
17. For the first band, enter the following:
d. Expand Length of Service, and select Less than 5 Years.
f. Click OK.
d. Expand Length of Service, and select Greater than 5 Years.
f. Next to this expression, enter AND.
g. Select the Entities tab.
h. Expand Person, and select Grade.
i. Copy the content preview line into the Expression field.
j. Next to this expression, enter = “A1”.
k. Click OK.
Your expression should look like this:
The following table shows the band details you must create for Band 1 in the Qualification Details section:
1 75 percent pay up to 10 days of 10 75

absence

days
The following table shows the band details you must create for Band 2 in the Qualification Details section:
1 100 percent pay up to 10 days 10 100

of absence

days
Appendix E: Defining Absence Plans Worked Examples

The following are examples of creating various types of Absence Plans:
» Creating a vacation accrual plan

» Creating a maternity qualification plan
Example 1: Creating a Vacation Accrual Plan

In this example, create an Absence Accrual Plan where:
» After a 1-month waiting period from hire date, the employees in Grades A and B earn 2 days of vacation time
incrementally every 2 months with a 20-day ceiling, a 5-day carryover limit, and a 5-day negative balance
permission.
» After a 1-month waiting period from hire date, the employees in Grades C and D earn 1 day of vacation time
incrementally every 2 months with a 20-day ceiling, a 2-day carryover limit, and a 5-day negative balance
permission.
To create this plan:
1. In the Absence Administration work area, start the Manage Absence Plans task.
2. Click Create.
3. In the Create Absence Plan dialog, specify the following:
Field Value
Legislation Select your legislation.
Plan Type Accrual
4. Click Continue.
5. On the Create Absence Plan page, specify the following:
Field Value
Plan Vacation
Legislative Data Group Select your US legislative data group
Status Active
Plan UOM Days
Type Anniversary year
Anniversary Event Rule Hire Date
6. Click Save.
7. Select the Participation tab, and specify the following:
Field Value
Waiting Period UOM Months
Duration 1
8. Click Save.
9. Select the Accruals tab, and specify the following:
Field Value
Accrual Method Incremental
Accrual Frequency Source Person primary frequency
Accrual Vesting Rule Elapsed period
Duration 2
UOM Months
Ceiling Rule Flat amount
Ceiling 20
Carryover Rule Include in matrix
Negative balance allowed Select
Negative Balance Limit 5
10. In the Accrual Matrix section, create the following accrual bands:
Band Sequence Expression Accrual Rate Carryover Limit
1 ([Person.Grade] = "A") OR 2 5
([Person.Grade] = "B")
2 ([Person.Grade] = "C") OR 1 2
([Person.Grade] = "D")
11. Click Save.

12. Select the Entries and Balances tab, and complete the following fields:
Field Value
Final Disbursement Rate Rule If applicable, select one of the following rules:
 Rate Definition, with the rate name you previously created
 Formula, with the formula you previously created
 Unpaid
Discretionary Disbursement Rate Rule If applicable, select one of the following rules:
 Unpaid
Absence Payment Rate Rule If applicable, select one of the following rules:
 Unpaid
Liability Rate Rule If applicable, select one of the following rules:

 Unpaid
Transfer absence payment information for payroll processing Select the checkbox.
Element Select the element you created as part of the prerequisite task.
NOTE: Do not enter rate rules at the plan level if you have already defined them at the element level. If you
enter the rates at both the element and plan levels, the rate at the plan level takes priority.
13. Review the information you entered in all the tabs.
14. Click Save and Close.
Example 2: Creating a Maternity Qualification Plan

In this example, we will create an Absence Qualification Plan where:
» All fulltime employees that have been employed for 6 months or longer are eligible.
» Employees with less than 5 years of service are entitled to 8 weeks of pay at 90 percent of salary, followed by
16 weeks of pay at 50 percent of salary.
» Employees with equal to or greater than 5 years of service are entitled to 8 weeks of pay at 100 percent of
salary, followed by 16 weeks of pay at 75 percent of salary.
Set up an eligibility profile that restricts the plan to just fulltime employees. For further information, see Global
Human Resources Cloud Implementing Absence Management on Oracle Cloud Help Center.
To create this plan:
1. In the Absence Administration work area, start the Manage Absence Plans task.
2. Click Create.
3. In the Create Absence Plan dialog box, specify the following:
Field Value
Legislation Select your legislation.
Plan Type Qualification
4. Click Continue.
5. On the Create Absence Plan page, specify the following:
Field Value
Plan Maternity
Legislative Data Group Select your legislative data group
Status Active
Plan UOM Weeks
Type Rolling backward
Term Duration 6
Term Duration UOM Months
Start Rule Absence Start Date
Overlap Rule Include
6. Click Save.
7. Select the Participation tab, and specify the following:
Field Value
On Loss of Plan Eligibility Only, Terminate Entitlement Select the checkbox.
Eligibility Select and add the eligibility profile that you created as part of the
prerequisite task.
8. Click Save.
9. Select the Entitlements tab.
10. In the Entitlement Attributes section, select Matrix.
11. In the Qualification Band Matrix section, click Add to add a row.
12. In the Sequence field, enter 1.
13. Click Expression Builder.
14. In the Derived tab, expand Length of Service and select LengthOfService_LessThan5.
15. Copy the content preview line into the Expression field.
16. Click OK.
17. In the Create Absence Plan page, click Save.
18. Repeat these steps to ensure that you provide the following key information:
Field Value
Sequence 2
Derived factor to select in the expression builder LengthOfService_ EqualToorGreaterThan5
19. In the Qualification Band Matrix section, select the LengthOfService_LessThan5 row.
20. In the Qualification Details section, specify the following:
1 8 weeks at 90 percent pay 8 90
21. In the Qualification Band Matrix section, select the LengthOfService_EqualToorGreaterThan5 row.
22. In the Qualification Details section, specify the following:
1 8 weeks at full pay 8 100
23. Click Save.

24. Click the Entries and Balances tab, and specify the following:
Field Value
Absence Payment Rate Rule Select the Maternity Leave rate definition that you created.
Transfer absence payment information for payroll processing Select
Element Select the absence element that you created as part of the
prerequisite task.
25. Review the information you entered in all the tabs.

26. Click Save and Close.
Appendix F: Creating Absences for California Sick Pay Rates Worked Example
Eligible paid commission or piece-rate employees in California must have their commission or piece rate factored
into their base salary rate. For these employees, the payroll process calculates their sick pay rates differently than
their base salary rate. To find their sick pay rate, the payroll process:
1. Determines the 90 days of employment prior to the absence, based on the date earned.
It does this using the new “Relationship 90 Earned Days to Date” balance dimension attached to the related
balances.
2. Finds the full pay periods that include that date range.
3. For those pay periods, it finds the employee's:
» Regular earnings
» Commissions
» Piece rate earnings
4. Based on those earnings and hours worked, it determines the pay rate.
The following example illustrates how an employer would configure absences for commissioned employees to
ensure their commissions contribute to their sick pay rate.
In this example:
» A California employee reports a sick day on 5/10/17. This makes the 90-day date range for earnings
calculations to be for the period beginning 1/29/17 to the period ending 5/6/17.
» The employee earns a regular base rate of 31.25 USD per hour and works 40 hours per week.
» The employee is eligible for monthly commissions.
» The employer runs bi-weekly payroll.
The employer must perform the steps in the following sections to ensure that when they run the payroll process, it
accurately determines the employee’s sick pay rate based on the following earnings:
Period Ending
Earned Date Earnings Type Earnings Amount Earnings Hours
2/11/2017 Regular 2500 80
Commission 1000 N/A
2/25/2017 Regular 2500 80
3/11/2017 Regular 2500 80
Commission 3000 N/A
3/25/2017 Regular 2500 80
4/8/2017 Regular 2500 80
Commission 2500 N/A
4/22/2017 Regular 2500 80
5/6/2017 Regular 2500 80
Commission 4000 N/A
TOTAL 28000 560
Based on these values the sick pay rate would be 50 USD per hour.
To correctly calculate this employee’s earnings, the employer must:
1. Define the earnings balance.

2. Define the hours balance.
3. Define the rate definition.
4. Create the absence element.
5. Define the absence plan and ensure the employee is enrolled.
6. Run payroll.
Earnings Balance
Define the earnings balance:
1. Start the Manage Balance Definitions task in the Payroll Calculation work area.
2. Click Create.
3. Select the US LDG, and click Continue.
4. Define an earnings balance with the following values:
Field Value
Name Rolling 90 Days Earnings Balance
Balance Category Standard Earnings
Unit of Measure Money
5. Save your work.

6. Restart the task, query your balance, and navigate to the balance dimension train stop.
7. Specify the start date of the absence plan as the effective as-of-date.
8. Click Select and Add from the Actions menu.
9. Search for and select the “Relationship 90 Earned Days to Date” dimension.
10. Click Apply and Done.
11. Click Submit.
12. In the Balance Feeds by Classification region, click Add Row.
13. Add the following classifications:
» Regular
» Shift
» Awards and Prizes
» Bonus
» Commission
Select Add for each.
14. Click Submit.

15. Click Done.
Hours Balance
Define the hours balance:
1. Start the Manage Balance Definitions task in the Payroll Calculation work area.
2. Click Create.
3. Select the US LDG, and click Continue.
4. Define an earnings balance with the following values:
Field Value
Name Rolling 90 Days Hours Balance
Balance Category Total Standard Earnings
Unit of Measure Hours in decimal format, 3 places
5. Save your work.

6. Restart the task, query your balance, and navigate to the balance dimension train stop.
7. Specify the start date of the absence plan as the effective as-of-date.
8. Click Select and Add from the Actions menu.
9. Search for and select the “Relationship 90 Earned Days to Date” dimension.
10. Click Apply and Done.
11. Click Submit.
12. In the Balance Feeds by Element region, click Create.
13. Add the following elements:
» Regular Salary Earnings Results
» Paid Time Off Earnings Results
» Holiday Earnings Results
For each, ensure you select the Hours Calculated input value and select Add.
14. Click Submit.

15. Click Done.
Rate Definition
Define the rate definition:
1. Start the Manage Rate Definitions task in the Payroll Calculation work area.
2. Click Create.
3. Select the Derived Rate category and a US LDG.
4. Click OK.
5. Specify the following values:
Field Value
Name Commission Sick Pay Rate
Short Name COMMSICKPAY
Employment Level Payroll Assignment
Status Active
Periodicity Hourly
Periodicity Conversion Formula Assignment Working Hours Rate Annualized
Currency US Dollar
6. In the Rate Contributors section, click Create.

7. Select the Balance contributor type, and click OK.
8. Specify the following values:
Field Value
Add or Subtract Add
Reference Date Previous Payroll Period End
Balance Name Rolling 90 Days Earnings Balance

NOTE: This is the balance you created in the Define the
Earnings Balance section.
Balance Dimension Relationship 90 Earned Days to Date
Periodicity Delete the default value
Divisional Balance Rolling 90 Days Hours Balance

NOTE: This is the balance you created in the Define the
Hours Balance section.
9. Click Save and Continue.

10. Select the Contributor Rules tab.
11. For Contributor Total Periodicity, select Hourly.
12. Click Submit.
Absence Element
Create the absence element:
1. Start the Manage Elements task in the Payroll Calculation work area.
2. Click Create.
3. Select the US LDG.
4. Select the Absences primary classification and Sickness secondary classification.
5. Click Continue.
6. In the element template, specify the following:
Field Value
Name CA Commission Sick Pay
Reporting Name CA Commission Sick Pay
What calculation units are used for reporting? Hours
Work Units Conversion Rule Periodic Work Schedule Rate Annualized
What type of absence information do you want transferred to Accrual Balances and Absences
payroll?
7. Click Next.
8. Specify the following:
Field Value
How do you want to reduce earnings for employees not requiring Select rate to determine absence deduction amount Pay
a time card?
Rate to Determine Absence Deduction Amount Leave blank

NOTE: This reduces the salary by the base rate.
Which rate should the absence payment calculation use? Commission Sick Pay Rate
NOTE: This is the rate you defined in the Define Rate
Definition section.
How do you want Absence Payment to be taxed? Regular
Calculate absence liability? Yes
Which rate should the liability balance calculation use? Commission Sick Pay Rate
NOTE: This is the rate you defined in the Define Rate
Definition section.
Does this plan enable balance payments when enrollment ends? No
Does this plan enable partial payment of balance No
Should this element be included in the earnings calculation of the No

FLSA overtime base rate?
Should this element be included in the hours calculation of the No

FLSA overtime base rate?
9. Click Next.
10. Click Submit.
11. Create element eligibility for the base and indirect elements.
12. Click Done.
Absence Plan
Define the absence plan and absence type as described in the Managing Absence Components section, and enroll
the employee.
Any employee enrolled in this plan, when they report an absence, the payroll process calculates the sick pay rate
based on the correct pay rate.
Run Payroll
When you run the payroll process:
1. The rate definition divides the applicable earnings by the applicable hours. This derives the sick pay rate.
2. The payroll process divides the applicable earnings of 28,000 USD by the applicable hours of 560.
3. The process pays the sick pay at the 50 USD per hour rate.
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Oracle Fusion Human Capital Management for the United States Absence Management February 2018
Author: Kim Linden
Contributing Authors: John Lawson

Absence Element Setup US WP Final

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Absence Element Setup US WP Final

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Oracle Fusion Human Capital Management for

the United States

Absence Management and Payroll 1

Creating an Absence Payment Rate Other than Regular Salary 3

Creating Absence Elements 6

Calculation Information Repository 9

Creating Absence Discretionary Disbursement Earnings Elements 9

Creating Absence Final Disbursement Earnings Elements 9

Costing Absence Elements 11

Absence Fast Formula Configuration 12

Absence Plan Management 13

Creating Absence Plans 13

Absence Plan Options 13

Absence Plan Rules 13

Transferring Absence Information to Payroll 14

Absence Management Components: How They Work Together 16

Employee Enrollment in Absence Plans 17

Absence Processing and Administration 17

Update Accrual Plan Enrollments Batch Process 17

Calculate Accruals and Balances Batch Process 18

Withdraw Accruals and Balances Process 20

Employee Absence Records 21

Absence Record Entry 21

Absence Calculation Cards 22

Absence Balance Review 25

Appendix B: Customizing Absence Formulas Working Example 26

Defining the Calculation Step 26

Defining the Calculation Factor 27

Modifying the Base Element Processing Formula 27

Example 1: Creating Bands Based on Length of Service 29

Example 2: Creating Bands Based on Location and Length of Service 30

Example 3: Creating a Date-Effective Accrual Matrix Based on Grade Bands 31

Appendix D: Creating Qualification Band Examples 32

Example 1: Single Payment Band for Multiple Length of Service Ranges 33

Example 2: Multiple Payment Bands for a Grade Range 34

Appendix E: Defining Absence Plans Worked Examples 36

Example 1: Creating a Vacation Accrual Plan 36

Example 2: Creating a Maternity Qualification Plan 38

Absence Management and Payroll

The process consists of the following:

Object Set Up Task Work Area

Rate Definition Manage Rate Definitions Payroll Calculation

Absence Element Manage Elements Payroll Calculation

Derived Factors Manage Derived Factors Absence Administration

Eligibility Profile Manage Eligibility Profiles Absence Administration

Absence Plan Manage Absence Plans Absence Administration

Absence Types Manage Absence Types Absence Administration

» Absence payment amounts

4. Enter an effective date, such as 2010-01-01.

Name Name of the rate definition.

Short Name Short name of the rate definition.

Periodicity Default is Annually.

Periodicity Conversion Default is Standard Rate Annualized.

Factor Rule Select Value.

Name Enter a value of 0.75 (as an example).

Currency Currency for the rate definition.

Add or Subtract Select Add.

Employment Level Select Payroll Assignment.

Periodicity Select Annually.

Factor Rule Select Value.

e. Click Save and Continue.

Creating Absence Elements

Name Name of the absence element.