Number of Pay Periods in Year Calculated Incorrectly
Last updated on AUGUST 29, 2016
Applies to:Oracle Human Resources - Version 12.1 HRMS RUP6 and later
Oracle Payroll - Version 12.1 HRMS RUP6 and later
Information in this document applies to any platform.
The number of pay periods for the current year is being calculated based on the end date of the payroll period rather than the payment date.
This results in the wrong number of pay periods being calculated for the coming year 2016.
Expect the calculation of payroll periods to be 26 and not 27 in order to calculate PTO correctly.
Steps to Reproduce:
The issue can be reproduced at will with the following steps:
1. Create a PTO Plan that uses the seeded formula PTO_PAYROLL_BALANCE
2. Create a Payroll with setup:
First Period End Date: 18-DEC-1999 21 years
Scheduled run 3
3. Create an employee, using the payroll you created
4. Add the vacation plan to the employee
5. Check accruals for 2011 and you will see the accrued amount is
Net Entitlement: 6.23 instead of 6.47 when the yearly entitlement is
based on an accrual band where 9 - 99 years is 168.22
168.22 / 27 = 6.23
168.22 / 26 = 6.47
Development has provided a new profile "HR: Calculate Number of Pay Periods Based on".
The new behavior is as follows:
When the profile option value is REGULAR_PAYMENT_DATE the number of periods should be based on REGULAR_PAYMENT_DATE and when it is END_DATE it should be based on the end_date column in the per_time_periods table
If the value is not given or not one of the above the default behavior should be based on end_date only.
Be aware of the effects of changing the profile option value for PTO users:
PTO can be accrued based on each payroll run.
If Oracle Payroll is in use, the accrual plan can be setup so that gross accruals are stored in a payroll balance. Each payroll run retrieves the latest balance and calls the accrual formula to calculate new accruals since the end of the last payroll period.
Hence, the change in the number periods in the year will have bearing on the PTO accrued as well. This is not wrong, however, customers need to be aware that the change impacts their PTO accrual (in case they are using Payroll run for accrual).
Note: some batch processes, such as the US Check Writer, call the accrual formula to calculate PTO accruals for each assignment.
This is used basically to benefit faster batch processing. It reduces the number of calculations the formula has to perform if you set up accrual plan to use a payroll balance.
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