Peoplesoft:

  1. Global Payroll
  2. HRMS 8.0
  3. GL
  4. PeopleTools
  5.  PeopleCode
  6. PeopleSoft Internet Architecture (8.x)
  7. Application Engine
  8. Component Interface

Implementation Issues:

1. Global Payroll:

Global organizational has the following main characteristics.

1.1 Global Payroll Architecture:

1.1.1 Core application:

        1.1.2 Related country extensions:

1.1.3 HRMS, Time and Labor, and GL Integration:

1.1.4 A Comprehensive Solution

Global Payroll is completely effective date driven. Rules, employee data, currency values and more are all keyed by effective date—maintaining a complete history of all changes made in the system.

PeopleSoft Global Payroll is a rules-driven system. This means that you define the rules that determine calculations, processes and results. Once you’ve defined these rules, you use them as long as they remain correct. If a change occurs—for example, your organization changes a policy—you simply change the affected rule.

You can use PeopleSoft Global Payroll to construct a payroll system tailored to your specific needs without having to engage in any programming or program modifications. Simply by entering data into the various online panels you will be able to create and use your payroll system. With no payroll rules in the code line, you are not dependent on programmers to make system changes. All of this capability relies on the core application foundation.

An element is the smallest component of PeopleSoft Global Payroll. Elements are building blocks that relate to other building blocks to define and form your payroll system. Each element is defined once. Then you can use it anywhere in the system over and over again. You don’t waste your time defining the same element again in a different place. And these elements can be put together in countless ways to produce a payroll system unique to your needs.

PeopleSoft Global Payroll combines several types of elements to make the rules for your payroll:

PeopleSoft Global Payroll is a system that offers extreme flexibility in defining and customizing the rules for calculating a payroll without modifying or customizing code. The core engine contains no payroll rules, no preset sequence, and no tax algorithms. Instead, you create and store the rules as data entered through the online panels. These rules you create—the data—will drive the system’s core application, thereby defining the actual payroll process. Think of a “rule” as what defines how an element is calculated. Rules actually define the payroll process itself. Each country using PeopleSoft Global Payroll will define its own rule definitions.

Once you have defined your elements and rules, you have defined the payroll process itself.

Payroll Elements

Defining earnings and deductions is at the heart of any payroll system. In PeopleSoft Global Payroll, earnings and deductions are calculation rules, and like all rules in the system, you have control over their content and processing.

Earnings

When defining earnings in Payroll, you can specify:

Deductions

Defining earnings or a deduction is almost identical, except that defining a deduction requires a few additional setup items to specify:

Flexible Accumulators

As you make payments, take deductions, and perform calculations, you’ll frequently want to track accumulated amounts, or balances. In PeopleSoft Global Payroll we call these accumulators.

PeopleSoft Global Payroll makes it easy to define and use accumulators, and also automatically generates certain accumulators based on data you’ve entered on the Payroll System Suffix panel group.

1. Members: elements to accumulators.

2. Period: Period, Segment Period, Month, Quarter, Year, User-defined.

3. Levels: Employee, Job, User defined additional keys.

 4. Powerful and Easy-to-use Formulas

Using the formula element, you create your own, customized, fully flexible elements using mathematical and logical operands. We know every customer is unique and has unique needs. To meet these needs, we have defined the formula element as a place where you can easily define a unique formula, but still have it fit into PeopleSoft Global Payroll. Using formula elements, you can enter sophisticated rules and mathematical formulas. The attributes of the types of formulas you can build are:

Let’s look at an example of a formula. We’re going to plan a simple formula that could be used as a pension deduction. If the basic earnings are less than 10,000.00, then the pension deduction is 1% of basic earnings. If the basic earnings are greater than or equal to 10,000.00, then the pension deduction is 1% of the first 10,000.00 and 2% of the remainder. We want the formula to resolve to the amount of the deduction.

The formula will be the following:

If basic comp < 10,000 then pension = basic comp * .01,

else pension = (10,000 * .01) + ((basic comp - 10,000) * .02)

Endif

If your requirements are in words, it’s an easy step to turn them into a real formula. You can then use the Formula panel and create your formula online. All the definition is external and comprehensive for the functional user, you don’t need an IT resource anymore for code programming.

5. Convenient Messages Handling

By creating a specific kind of message element to be used in a formula, PeopleSoft Global Payroll enables you to manage your custom warning and error messages during batch processing. This gives you great flexibility in creating warning or error messages that suit your organization’s specific batch processing needs.

6. Rounding Rules

When you are performing calculations that resolve to a numerical value, you will often want to round the resulting value to suit your needs. You will use rounding rules to do this. For example, let's say you define a rounding rule that truncates all resolved values to only two decimal places.

During a calculation, a resolved value was 2.833333. The rounding rule would truncate the value to be only 2.83. 2.83 is the value that would be stored or used in further calculations.

Once you have defined your rounding rule elements, you can apply them to other elements throughout the system to determine how rounding will take place.

7. Payee Data and Overrides:

PeopleSoft Global Payroll enables you to enter data on a payee-by-payee basis or for all payees at oncewhatever works best for you. By using the concept of payees, we make sure you have the full flexibility you need. A payee can be an employee, or a non-employee, such as a contractor or pensioner. This enables full streamlining of your payment processes.

Positive input refers to earnings and deduction data entered for a single pay period. The data—such as hours worked, or a one-time bonus—is specific to a payee and can change each period.

You can enter positive input manually or receive it from other applications such as PeopleSoft Time and Labor.

PeopleSoft Global Payroll offers many optional features you can use when entering positive input. You can select the currency that applies to an entry, apply a compensation rate from a previous period, override a payee’s department, job code, or location, or enter information specific to your organization that can be transmitted to your general ledger system.

For any pay period, overrides may be entered for a single employee. For example, you may pay a particular employee a bonus one time during the year, or capture variable hours worked in a pay period for those employees working on an hourly basis. PeopleSoft Global Payroll has a hierarchy of rules that will be applied when calculating elements of pay. The override strategy is very wide and enables you to override a value or an element at various levels such as pay entity, pay group, payee, payee element, or pay calendar

8. Absence Time Processing

Correctly tracking and processing the time a payee is not at work is critical to producing an accurate payroll. You need to know when payees are out sick, on vacation, or absent for any other reason—and most importantly, whether to pay them for this time.

PeopleSoft Global Payroll provides an integrated set of absence management tools that give you complete control over all aspects of absence management—from defining valid absence reasons and accrual policies to defining the exact conditions that must be met before an absence can be paid.

PeopleSoft Global Payroll enables you to:

9. Unique Features

In PeopleSoft Global Payroll, you can choose the events (such as a transfer, salary change, and so on) that trigger segmentation or retroactivity, and streamline your payroll to compensate for events that occur before or after the payroll has been closed.

9.1 Segmentation Processing

In PeopleSoft Global Payroll you can “segment” components of pay based on such events as changes in compensation, employee status, or job changes during a pay period. For example, if an individual changes jobs in the middle of a pay period and your organization has a practice of separating components earned in the first job from those earned in the second job, you can set up your system to trigger segmentation of earnings results on the pay slip when there is a change to the job change action/reason field.

In PeopleSoft Global Payroll there are two types of segmentation: Period Segmentation and Element Segmentation.

9.1.1 Period Segmentation

Use period segmentation when an element (such as compensation rate) changes in mid-period, requiring all other elements in the process list to be calculated multiple times on either side of the date on which the change took place. The system calculates each element more than once, using the components that were effective during the different time segments. The system keeps the results of these calculations separate, with the objective of creating two gross-to-net result sets.

9.1.2 Element Segmentation

Use element segmentation when an element changes in mid-period, requiring the affected element (and perhaps a subset of other elements) to be calculated multiple times on either side of the date on which the change takes place. Unlike period segmentation, the system segments only the elements you select, and creates separate result columns only for the specified elements. In element segmentation, there is only one gross-to-net result set.

As an example of element segmentation, let’s assume your pay period spans one month with 31 days, beginning on the first day of the month and ending on the last day. If a payee’s base rate of pay (for example, 4,000 as of begin pay period) were to change in the middle of the month (for

example, 5,000 as of the 16th), then the gross to net calculation factors would change on that date. The system will separate (segment) the gross-to-net components of pay and itemize them on the pay slip for the periods of time when the employee was earning one salary (4,000 * 15/31) and when he was earning the new salary (5,000 * 16/31).

9.2 Count and Proration Rules Elements

Count and proration elements are closely tied to segmentation.

A count element is a process by which you can count the number of days or hours from a specific period of time. The count element refers to the work schedule associated with each payee so that the correct workdays are counted.

A proration is the process by which the system takes a calculated result and applies a coefficient to it. This coefficient factor is defined as a subset of the total pay period, such as a slice or segment period, over the total pay period, known as a proration rule. When defining a proration rule, you are actually defining what values to use as the numerator and denominator that comprise the proration rule factor.

9.3 Retroactivity Processing

In a perfect world, all data in your payroll database would be 100 percent accurate at the time of your payroll run. But this is not always true. There are times when you must correct or add data that applies to a specific pay period after the payroll for that pay period has been processed. In such instances you will use PeopleSoft Global Payroll’s retroactivity features.

There are two basic methods for calculating retroactivity in PeopleSoft Global Payroll: corrective retroactivity and forwarding retroactivity.

9.3.1 Corrective Retroactivity

Use this method to recalculate the elements of a past pay run, updating all accumulators (all balance accumulators are updated as well as those for the segment period). This results in a complete recalculation of the pay run for that segment period. The recalculated pay run replaces the previously calculated run. However, the original pay run calculation remains available for auditing and reporting purposes. Rather than forwarding retro deltas to the current calendar as an adjustment, the system sends any adjustment to the “Net to be Paid” or any specific deductions for the recalculation period to the banking process for further handling.

9.3.2 Forwarding Retroactivity

Use this method to recalculate the elements of a past pay run and carry forward the differences between the new calculation and the old to the current calendar period as an adjustment for any elements specified by the user. Unlike corrective retro, forwarding retro does not result in the replacement of the original results, and balance accumulators are updated not in the recalculated period but instead in the current calendar period.

9.4 Flexible Payroll Processing Framework

PeopleSoft Global Payroll offers an extremely flexible payroll processing framework that encompasses calendars, generation control, and iterative processing.

9.4.1 Payroll Processes

With PeopleSoft Global Payroll, once you’ve defined your payroll elements, you can organize them into process lists that tell the system which elements to resolve during a payroll run.

Because our application enables you to tailor processing to fit your specific needs, payroll processing is streamlined and efficient. Typically, a process will consist of one or more of following types of elements, depending on your requirements:

Calendars

Once you have defined the process you want to run, PeopleSoft Global Payroll uses eligibility groups, pay groups, and calendars to tie the elements in your process to the payees you need to process.

Eligibility groups indicate the specific elements for which a certain payee population is eligible.

You can then group employees with similar payroll needs together for processing into what we call pay groups. Each payee is assigned to a pay group and an eligibility group.

PeopleSoft Global Payroll enables you to create all your calendars in advance to streamline

processing. Calendars identify:

Generation Control

Generation control elements enable you to indicate to the system whether to process an element based upon criteria you define. This is accomplished by including or excluding one or more parameters that you define. You can define these parameters at different levels, such as HR status (active, suspended, terminated, and so on), action (for example, hire, promotion, transfer), frequency, segment status, and formula.

For example, let’s say that you have an employee who is paid weekly and she has a monthly medical deduction of 100 that she wants deducted only once a month. You can define the generation controlfrequency parameters—so that this deduction is only taken out of the first pay period of the month.

Running Payroll with Iterative Processing

PeopleSoft Global Payroll enables you to calculate the gross-to-net process at any time during the pay period so you can preview the results of the payroll calculation, based on what is known up to that point. Should you run the preliminary payroll at the beginning of the month for salaried employees, when you run your final payroll at the end of the month the system will recalculate payments only for those employees who have had changes since the preliminary payroll(s) were run. The system detects such changes automatically with the use of triggers—no user intervention is necessary. Unlimited preliminary runs can be processed for a pay period.

2. HRMS 8.0:

3. General Ledger

4. Accounts Payable

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