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Fusion Global Payroll: The ‘Overtime Regular Earnings’ Calculates Incorrectly (Doc ID 2677843.1)

Last updated on JUNE 17, 2022

Applies to:

Oracle Fusion Global Payroll Cloud Service - Version 11.13.20.01.0 and later
Information in this document applies to any platform.

Symptoms

On : 11.13.20.01.0 version, Global Payroll

ACTUAL BEHAVIOR
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After Salary hike mid of the month the ‘Overtime Regular Earnings’ is calculated on the revised salary which is incorrect. The expected calculation is it should be based on the Element Entry Amount on that particular date.

EXPECTED BEHAVIOR
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The Overtime is calculated on Rate 16.43836 which is incorrect. It should be calculated on rate 13.9726

STEPS
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1.The Overtime Earnings works fine if there is no change in salary mid of the month.
 The two components are considered for Overtime Earnings ‘Basic Salary’ and ‘Special
Allowance’. This is achieved by defining the Rate Definitions. Three Rate Definitions are defined.
a)OT Regular Rate: Type Derived Rate uses ‘Special Allowance Rate’ and ‘Basic Salary Rate’ with factor 1.25
b)Special Allowance Rate: Type element, uses Input Value ‘Amount’
c)Basic Salary Rate: Type element, uses Input Value ‘Amount’

2.The Element ‘Overtime Regular’ is defined as time card element based on Rate ‘OT Regular Rate’
3.The Retrieval Date for ‘Overtime Regular Element Rate’ and ‘Overtime Regular Payment Rate’ is set to Effective Date at ‘Calculation Value Definition’ level
4.Hired an employee on 5th April 2020. The employee has ‘Overtime Regular’ entry on 5th, 6th, 7th and 9th April 2020.
5.The Overtime is calculated 1.25 times of basic salary + Special allowance. The number of hours considered is 10.
6.Basic Salary: 3000/month. Special Allowance 400/month. The calculated rate should be 3400*12*1.25/(365*10) = 13.9726
7.One of the salary component is revised on 25th April
Revised Value: Basic Salary: 3000/month. Special Allowance 1000/month. The calculated rate is 4000*12*1.25/(365*10) = 16.43836
8.The Overtime is calculated on Rate 16.43836 which is incorrect. It should be calculated on rate 13.9726
9.Calculated Quick Pay. Below is the rate details. The employee has Overtime Regular entry on 5th, 6th, 7th and 9th. Person Number: xxx. Period: 4 2020 monthly
10. The Rate as stated earlier should be 13.9726.


Cause

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In this Document
Symptoms
Cause
Solution
References


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