Negative balance for an employee during a payroll run - how do we avoid this? (Doc ID 761084.1)

Last updated on DECEMBER 09, 2022

Applies to:

Goal

How does the Oracle payroll system handle negative balances during a payroll run?

Example:

1. An employee having Salary of 40,000 is given a Salary advance of 40,000 (eg on 2-Apr-2008) and the system is flagged to deduct the salary in the payroll cycle same month (25-Apr-2008).

2. So when the Payroll runs on the 25-Apr-2008 first the Pension Employee contribution is deducted eg. 5,000 (i.e. 40,000-5,000 = 35,000). Next the Salary advance that was paid needs to be recovered from the remaining salary (35,000-40,000 = - 5,000).

3. So for that month this employee has a negative balance of 5000 and this should be deducted from the employee’s salary the next payroll cycle (25-May-2008).

Solution

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