HCM HRX OM Payroll Setup 23B

Oracle Fusion HCM (Oman)
Payroll and HR Implementation and Functional Considerations
July 3, 2023 | Version 1.00

Copyright © 2023, Oracle and/or its affiliates
Confidential: Public
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This document provides an overview of features and enhancements included in release 23A. It is intended solely to help you
assess the business benefits of upgrading to 23A and to plan your I.T. projects.
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1 Oracle Fusion HCM (Oman) Functional and Implementation Considerations | Version 1.00
Copyright © 2023, Oracle and/or its affiliates | Public

TABLE OF CONTENTS
Purpose Statement 1
Disclaimer 1
Changes to this Document 4
Introduction 5
What’s in this Document 5
Other Information Sources 5
Document Updates 5
Comments and Suggestions 5
Payroll Data 6
Person and Employment Payroll Data 6
Payroll Relationships and Assignments 6
Calculation Cards 6
Statutory Deductions and Gratuity Calculation 6

Social Insurance Calculation 7
Social Insurance Calculation for GCC citizens 8
Social Insurance Deductions 10
Legislative Repository for Calculation Information 10
Gratuity Calculation 11
Elements 14
ELEMENT CLASSIFICATIONS 14
Primary Classifications 15
Secondary Classifications 15
Subclassifications 16
Reviewing Classifications 16
Element Templates 16
Availability of Element Template Functionality Based on Product License 17
Setting up Licenses 17
Creating a Standard Earnings Element: Worked Example 17
Proration and Retroactivity 20
Proration 20
Retroactivity 21
Third-Party Organization or Person 22

Third-Party Organization 22
Third-Party Person 24
BALANCES 24
Balances Definitions predefined for Oman 25
BALANCE CATEGORIES 25
BALANCE TYPES 26
BALANCE DIMENSIONS AND DEFINED BALANCES 27
Balances and SOE 27
SOE SECTIONS AND RELATED BALANCES 27
PREDEFINED SOE DATA FOR OMAN 29
USER-DEFINED BALANCES AND SOE 29
Hiring an Employee and Running Payroll for Oman: Worked Example 30

Hire an employee 31
Assign additional information 33
Remuneration 33
Calculation Cards 35
Personal Payment Method 35
Run Payroll and Review Results 35
Payroll run 36

Review Payroll Results 36
Mandatory Post-Payroll Processes 36
Calculate Prepayments 36
Archive Periodic Payroll Results 38
Payments Processing and Payslip 39

Payments Processing 39
Report Execution 39
Generate Cheque Payments 40
Payslip 41
Payslip Regions 41
Report Execution 43
Rollback Process 43
Rollback Execution 43
Payroll Cycle Flow 44
Flow Execution 44
Termination 45
Steps to check Pay Status 45
Worked Example – Terminating an Employee 45
Gratuity Calculation Card 45
Running Payroll 45
Reverse or Correct Termination 46
Glossary 46

CHANGES TO THIS DOCUMENT
RELEASE DOCUMENT DATE OF CHANGE DOCUMENT SECTION DESCRIPTION OF CHANGE
VERSION VERSION CHANGE TYPE
13.23A 1.0 Initial version
13.23B 2.0 Payslip, Cheque and EFT

INTRODUCTION
This paper identifies and describes payroll setup tasks for Oracle Fusion Human Capital Management (HCM) for Oman.
What’s in this Document

This document is intended to support the implementation team in understanding:
Oman-specific payroll data that needs to be provided.
Oman statutory deductions calculations and set up needed at implementation level.
Oman predefined element templates and set up that needs to be done when creating customer specific elements.
Oman-specific predefined balances and how these can be fed by customer specific elements.
Oman-specific considerations for proration, retroactive changes and terminations.
Note: Flexfields described in this document are Developer Descriptive Flexfields (DDF) that must not be customized at an
implementation level. Customer Descriptive Flexfields (DFFs) are the fields delivered by the product to be used for
customization during implementation.
This documentation can also be beneficial to end users who run application processes after implementation.
Note: This document should not be considered a comprehensive guide for payroll implementations. The focus of this
document is Oman-specific processes and information. For information about generic tasks, the implementation team
should refer to documentation listed in the following section.
Other Information Sources

For more information on setting up Oman payroll, refer to the separate document Oracle Fusion HRMS (Oman) HR -
Functional and Implementation Considerations on My Oracle Support (MOS).
On the Oracle Help Center under Cloud Applications -> Human Recources -> All Books, see:
Implementing Global Payroll
Workforce Deplayment Implementation Guide
Document Updates
This document is based on the most current application release as of the document’s publication date. Content is updated
as needed only to reflect major changes to existing features or when significant new features are added to Oman
localization. For this reason, it is possible that some minor UI differences may exist between the version being implemented
and the version described in this document.
Comments and Suggestions

Your comments are important to us. We encourage feedback about Oracle Fusion Applications Help and guides.
Please send your suggestions to: oracle_fusion_applications_help_ww_grp@oracle.com.
You may also use the Send Feedback to Oracle link in the footer of Oracle Fusion Applications Help.

PAYROLL DATA
Person and Employment Payroll Data

For a person to be processed in payroll a payroll relationship must be defined. This section describes specific requirements
for Oman in terms of payroll relationships including the Oman-specific information needed for payroll that must be
captured in the employment and payroll relationship data.
Payroll Relationships and Assignments

Payroll Relationship represents the relationship of the person with the Payroll Statutory Unit (PSU). This varies from country
to country, but essentially no balance aggregation is performed above this level for a person.
Each country defines the person types for which a payroll relationship is created. In general, to be processed in payroll, a
person must have a person type of Employee, Contingent Worker, Candidate or Beneficiary.
In Oman, the payroll relationship type Standard is used for person type Employee.
You can also create a payroll relationship for other person types such as contingent worker and nonworker.
If the nonworker type is NonWorker Paid, the payroll relationship is Standard.
If the nonworker type is NonWorker, the payroll relationship must be of type Element Entries Only.
If the nonworker type NonWorker Unpaid, no payroll relationship is created.
For contingent workers, the payroll relationship is of type Element Entries Only.
For employee candidate, the payroll relationship is Standard.
For contingent worker candidate, the payroll relationship is of type Element Entries Only.
For Oman, a single payroll relationship is created per relationship type. In case of rehire, the employee is treated as a new
employee and so there is only one payroll relationship per person. For Oman, the payroll relationship rule Continuous Period
of Service (C) is predefined.
Note: Payroll relationship rule Continuous Period of Service (C) implies that when the HR user creates a new Work Term, a
check is made for a Payroll Relationship of the same type and PSU. If one exists, the Last Standard Earning Date (LSED) of
the payroll relationship will be validated. If it is greater than the Term start date, the Work Term will be attached to it. If it is
less than the Term start date, a new Payroll Relationship will be generated. If one does not exist, a new Payroll Relationship
will be generated. When a Work Term is terminated, if it is the last active Work Term associated with the Payroll Relationship,
the Payroll Relationship will also be terminated.
Note: You can find the predefined data for legislation rules in the Oracle_Fusion_HRMS_OM_Payroll_Data.xls on My Oracle
Support (MOS).
Oman has a requirement to handle multiple assignments within a legal employer. Possible valid combinations are:
1 Payroll Relationship – 1 Assignment
1 Payroll Relationship – n Assignments
Social insurance deduction is calculated at payroll relationship level. Earnings related to social insurance are considered at
Relationship and Assignments.
Oman-specific data must be captured at a payroll relationship level and the calculation of some country specific allowances
is derived from this.
Calculation Cards
Please refer to oracle Fusion HRMS (Oman): HR Implementation and Functional Considerations document for Oman
Calculation Card Setup.
STATUTORY DEDUCTIONS AND GRATUITY CALCULATION

The data entered at the PSU level and at the person level are the starting point for calculating statutory deductions and
gratuity payment, if applicable.
Based on legislative requirements Oman localization has predefined a setup with the parameters to be used in the
calculation. These parameters are stored in the legislative repository for calculation information.

Social Insurance Calculation
Social insurance is applicable to all Gulf Cooperation Council (GCC) citizens who work in Oman and are paid there. This
contribution is normally paid both by the employer and the employee, but there are some exceptions to this behavior that
can be defined at the person social insurance calculation card level.
For private sector employees (GCC except Oman):
The amount of the contributory salary can be overridden at the person level.
If no override is present and for non-Omani employees, then the country-specific balance Employee Private Sector
Contributory Salary Base can be used to calculate the amount.
If balances aren’t fed, you can define a formula used to calculate the contributory salary at the legal employer level.
Finally, if none of the above are defined, the contributory salary uses the value of earnings elements that are subject to
social insurance. These elements are identified through secondary classification and feed the balance Subject to
Social Insurance. Further details on how Oman has defined element classifications and balances can be found in
the related sections.
The contributory salary is set once a year in the first month of payroll processing for the employee (when a new hire) or
in the first month of the year (January). If there is a need to correct the contributory salary that has already been
set, then you can use the Social Insurance Contributory Salary Adjustment component of the Employee Social
Insurance Details calculation card. The contributory salary will be modified in the next, normal, payroll run.
The contributory salary may have a monthly minimum value and a monthly ceiling. This means that if the monthly
social insurance income is lower than the minimum value, contributions are calculated on the minimum value. If the
monthly social security income exceeds the monthly ceiling, contributions are due just on the part up to the ceiling.
If SI contributory salary less than the minimum salary, the employer will pay contributions on the actual contributory
salary and the employee will pay contributions on the minimum salary plus the employee will pay the employer's
share of contributions for the difference between their actual salary and the minimum salary.
If the employee’s payroll relationship is terminated before last day of the month, no contribution is deducted for all
citizens except Omani. If termination date is end of the month the full contribution is deducted.
Employee/employer rates applicable for both Private and Government Sectors from 1/5/2022 are:
Employee Rates
LEGISLATION GOVERNMENT SECTOR RATE % PRIVATE SECTOR RATE %
OM 7 7
QA 5 5
AE 5 5
SA 9 9
KW 7.5 7.5
BH 6 6
Employer Rates
BH 15 11 Basic + 3 Hazards
OM 17.5 10.5 + 1 Harzrd

QA 10 10
AE 15 15
SA 9 9
KW 11 11
BH 15 9
For the government sector (Omani and GCC):

The amount of the contributory salary can be overridden at the person level.
If no override is present, then the country-specific balance Employee Government Sector Contributory Salary Base can
be used to calculate the amount.
If balances are not fed, you can define a formula used to calculate the contributory salary at the legal employer level.
Finally, if none of the above are defined, the contributory salary uses the value of earnings elements that are subjected
to social insurance. These elements are identified through secondary classification and feed the balance Subject to
Social Insurance. Further details on how Oman has defined element classifications and balances can be found in
the related sections.
Contributory salary is calculated for each month of the payroll processing; hence it can vary each month.
For the Omani citizen, contributory salary will be used to calculate the employee and employer contributions as there
are no maximum and minimum salary range.
Social Insurance Calculation for GCC citizens

Social Insurance is now applicable to all Gulf Cooperation Council (GCC) citizens. There is a reciprocal agreement between all
6 GCC countries, namely United Arab Emirates (AE), Kuwait (KW), Saudi Arabia (SA), Bahrain (BH), Sultanate of Oman (OM),
and Qatar (QA).
Social Insurance contributions are calculated and deducted from all employees who have a GCC nationality and are working
in any of the GCC countries in accordance with the Unified Law of Insurance Protection Extension.
Employee Social Insurance Calculation Card has been enhanced to capture additional information:
Whether or not it has been agreed that the country of citizenship will pay any difference in contribution amounts.
Note: Currency Conversion Rate across the country of citizenship and country of employment needs to be considered for
social insurance calculation for GCC citizens working in Oman. You must set up conversion rates before processing social
insurance for GCC citizens.
In private sector, if the person is a Saudi citizen aged over 50 special rules will be applied no matter where they are
working in GCC
1. In the calendar year if the Saudi citizen reaches age 50, then there is no change in the contributory salary even if
the actual salary has changed
2. In the calendar year following the 50th birthday the contributory salary will be the lowest value of the Current
year’s contributory salary or previous year’s contributory salary plus 10% or the previous year’s contributory salary
if there is no change in the salary.
If there continues to be no change in salary in subsequent years after the salary has been set using the preceding
method, the same contributory salary will be continued to be used.
The following table illustrates the balances used, and the expected element balance feeds:

CITIZENSHIP SECTOR BALANCES NOTES
Kuwait Government Kuwait Employer Government Sector Social

Allowance Base: User fed with social allowance
elements that represent Social Allowance only
Kuwait Employee Government Sector Contributory
Salary Base
Kuwait Private Kuwait Employer Private Sector Social Allowance

Base: User fed with all social allowance elements
Kuwait Employee Private Sector Contributory Salary
Base
Bahrain Government Bahrain Employer Government Sector Social A rule to limit social allowance to
Allowance Base: User fed with social allowance 150BHD is applied. This is applicable
elements that represent Social Allowance only if the contributory salary is derived
from either of the contributory
Bahrain Employee Government Sector Contributory
salary balances, or from the subject
Salary Base
to social insurance balance.
Bahrain Private Bahrain Employer Private Sector Social Allowance A rule to limit fixed allowances to
Base: User fed with all social allowance elements 100% of basic salary is applied. This
is applicable if Bahrain Allowance
Bahrain Employee Private Sector Contributory Salary
Base in Private Sector balance is
Base
greater than Basic Salary. Excess
amount is reduced from subject to
social insurance.
Saudi Government Saudi Employer Government Sector Social Allowance

Base: User fed with social allowance elements that
represent Social Allowance only
Saudi Employee Government Sector Contributory
Salary Base
Saudi Private Saudi Employer Private Sector Social Allowance Base:

User fed with all social allowance elements
Saudi Employee Private Sector Contributory Salary
Base
UAE Government UAE Employer Government Sector Social Allowance

Base: User fed with social allowance elements that
represent Social Allowance only
UAE Employee Government Sector Contributory
Salary Base
UAE Private UAE Employer Private Sector Social Allowance Base:

User fed with all social allowance elements.
UAE Employee Private Sector Contributory Salary
Base

CITIZENSHIP SECTOR BALANCES NOTES
All GCC Government / Employer Contributory Salary: This should be user fed This balance is common to all GCC
Countries Private with Basic Salary elements countries. The employer social
insurance contributions will be
calculated based on this amount.
Note: When creating the balance feeds for the contributory salary base or the social allowance base you must ensure that
the effective date reflects when you intend to use these balances in your social insurance calculation. This is applicable for
both government and private sectors.
Social Insurance Deductions

Social insurance contribution is calculated through the deduction Social Insurance that is part of the component group
Social Insurance. Calculations are done through element Social Insurance.
To view details on component groups, calculations and elements:
1. Sign in to Oracle Fusion application using a role that has the profile of a Payroll Manager.
2. Navigate to the Payroll Calculation Information task in the Payroll work area.
3. Search for Social Insurance and select SI. View the Details.
Legislative Repository for Calculation Information

Parameters used in the calculation of social insurance are stored in the legislative repository for calculation information.
These parameters are predefined by the Oman localization and cannot be modified in the implementation phase.
To view predefined parameters:
1. Log in with a Payroll Manager role.
3. Search for Social Insurance and select SI. View the Details.
4. Open Calculation Factors under Social Insurance Processing:
By clicking on the range values details of the calculation factors are displayed:

Gratuity Calculation
Persons working in Oman are entitled to an additional payment upon termination which is called Gratuity. The entitlement
to this payment is accrued during the work relationship.
Gratuity calculations are triggered only for persons who are not eligible or not registered for social insurance and if employer
has opted to provide an employee gratuity. The gratuity amount to be paid is driven by Oman labor laws. If you are not
following the Oman labor laws, you can define your own formula for gratuity processing. The following two options are
available:
You can override the gratuity amount. In such a scenario, you may not need to use the localization solution for gratuity
processing.
You can define your own formula and create a setup according to the values to be returned to the formula run results.
In such a scenario, you may not need to use the localization solution for gratuity processing.
You can define your own reference formula gratuity processing, which substitutes the gratuity formula defined at the
legislative level. If a user-defined formula exists, then the seeded formula executes it.
The localization solution for gratuity processing uses the following rules:
The duration of service determines the number of days of gratuity payment to which the payee is entitled per year of
service. These days are retrieved from the legislative repository for calculation information. Note that the duration
of service can be reduced by unpaid absences. This is obtained by creating elements for Unpaid Leave classification
and attaching this element to the absence type. If an absence with this newly created absence type is recorded, the
Unpaid Leave element’s days input value will feed the Leave Without Pay balance. In the Gratuity formula, the
Leave Without pay balance is used to get the unpaid absences.
The base salary for gratuity payment is calculated through the salary formula selected at the legal employer level.
When a person is terminated the termination type and eligibility for gratuity is checked:
If the reason for termination is dismissal, then the gratuity is not paid
If the reason for termination is other than dismissal, the full gratuity amount the person is eligible for will be paid.
If the employee's does not meet any minimum service criteria, no gratuity will be paid. There is an exception, if the
reason for termination is death.
Daily Salary: Daily Salary is calculated as Monthly Salary divided by 30. Length of month is always considered as 30 days.
Gratuity Entitlement
Gratuity Payments are based on the Length of Service, Sector and Hire Date.
SECTOR LENGTH OF HIRE DATE ENTITLEMENT MAX LIMIT

SERVICE
Private 0 - 12 months 0

Private 12 months – 3 15 Days per year
year
Private 3+ months 15 Days per year for the first 3

years service.
30 Days per year, or part year,
for the remaining service.
Government 0 – 60 months After 8th March 2011 0
Government 60 + months After 8th March 2011 30 Days per year 10 months salary with a max.
gratuity amount of 12,000 OMR
for Grades 1-6
12 months salary with a max.
gratuity amount of 12,000 OMR
for Grades 7-14
Government 0 – 24 months On or Before 8th March 2011 0
Government 24 + months On or Before 8th March 2011 30 Days per year 12 months salary, with no
maximum amount limit.
There is no restriction for an organization to follow the above said grades.
Calculation Groups and Calculations

Gratuity payment is calculated through supplemental earnings Gratuity Payment that is part of calculation group Gratuity.
Calculations are done through element created as a Gratuity Payment.
To view details on component groups, calculations and elements:
1. Sign in to Oracle Fusion application using a role that has the profile of a Payroll Manager.
3. Search for Gratuity and select GRATUITY. View the Details.

Legislative Repository for Calculation Information
Parameters used in the calculation of gratuity are stored in the legislative repository for calculation information. These
parameters are predefined by the Oman localization and cannot be modified in the implementation phase.
To view predefined parameters:
3. Search for Gratuity and select GRATUITY. View the Details.
4. Open Calculation Factors for related element:
Below two screenshots have been changed.
5. Click Range Values. Details of the calculation factors are displayed:
Monthly Gratuity Accrual

The application calculates the accrual of gratuity on a monthly basis. The amount calculated is the amount that an employee
would be entitled to, if they were terminated at the end of that month and if they were eligible for payment. The monthly
gratuity accrual calculation is done through the Employee Gratuity Accrual Initiator element. The application keeps a record
of the total accrued amount and the incremented accrued amount (periodic difference).
Manually attach the Employee Gratuity Accrual Initiator element to employees for whom a monthly gratuity accrual is
required.
The monthly gratuity accrual considers the following details to calculate the gratuity:
Date of termination: The current pay period end date is taken as the date of termination.
Length of service: All types of paid leave are considered to calculate the length of service. Unpaid leave is not included.

Base Salary: The base salary for gratuity payment is calculated through the salary formula selected at the legal employer
level.
Termination Type: The calculation assumes the termination type as not Dismissal. And the employee is entitled to the
full amount.
Entitlement: Entitlement is same as the Gratuity EntitlementGratuity Entitlement mentioned in the preceding section
Maximum Limit: As specified in the Gratuity Entitlement section.
Note: Gratuity accrual is for information only, and to assist in costing potential terminations. It may not be the same
amount as calculated when an actual termination takes place.
ELEMENTS
Elements are the building blocks of payroll and benefits. There is no limit to the number of elements that can be defined.
Policies or business rules that govern the allocation of these elements to workers can be specified at the element level.
Elements can represent:
• Earnings, such as salary, wages, and bonuses
• Compensation, such as employee stock purchase and insurance plans
• Absences from work
• Tangible items distributed to persons, such as tools, uniforms, mobile phones, or computers
• Statutory deductions, such as employee taxes and social insurance
• Voluntary deductions, such as loans
• Involuntary deductions, such as court orders, as well as pretax deductions
• Employer taxes and other employer liabilities
Elements are grouped into primary classifications, such as Earnings and Voluntary Deductions. In a human resources
department, you can use the primary classifications to identify groups of elements for information and analysis purposes. In
a payroll department, the classifications control processing, including the sequence in which elements are processed and the
balances they feed.
Oracle Fusion supplies many predefined elements (that cannot be modified at the implementation level), while additional
elements can be generated, defining certain types of compensation and payroll elements through templates.
Element templates include the elements, balances, balance feeds, and formulas required for payroll processing. Templates
have various rules associated with them which will be used to create data based on certain criteria. The template engine will
get the values for the rules from the template and process the seeded template structure to create appropriate data that is
required.
Using the template infrastructure, Oman localization has defined its structures for creating a standard set of elements for
earnings, by modifying a global template questionnaire.
When creating an element the questionnaire that guides you through the creation depends on the classifications selected
for the element itself.
Once you complete the questionnaire and submit the process, the relevant payroll objects are generated. You now have the
ability to edit these objects (using the review pages and the object navigator) to ensure they fully meet your business
requirements.
ELEMENT CLASSIFICATIONS
Global Payroll has defined a set of primary classifications and Oman localization has selected the ones that are applicable for
the country.
Additionally a set of secondary classifications and subclassifications have been defined specifically by the localization.
• Secondary classifications are used in the element template process to drive the questionnaire and also to create the
element with the needed characteristics.
• Subclassifications are used to control balance feeds and identify a sub type of the particular classification.

All the classifications predefined for OM are listed in the Oracle_Fusion_HRMS_OM_Payroll_Data.xls on My Oracle Support
(MOS).
Secondary classifications and subclassifications can be created at implementation level and they do not have any impact on
the OM predefined data.
Primary Classifications
The following primary classifications are enabled for the Oman localization:
• Absences
• Balance Initialization
• Standard Earnings
• Supplemental Earnings
• Information
• Social Insurance Deductions
• Direct Payments
• Employer Charges
• Involuntary Deductions
• Voluntary Deductions
In the implementation phase, when creating an element through element template functionality, you are prompted to select
the primary classification for that element and this drives the questionnaire to use and also the characteristics of the
element that will be created.
Note: The subclassifications Subject to Social Insurance and Disposal Income Court Order are defaulted for all elements
with primary classification Standard Earnings.
Secondary Classifications
Secondary classifications are connected to primary classifications. The following secondary classifications have been
defined for the Oman localization:
Primary Classification Standard Earnings:
• Basic Salary
• Overtime
Primary Classification Supplemental Earnings

• Bonus
• Gratuity Payments
Primary Classification Absences:
• Maternity
• Other
• Sickness
• Vacation
Primary Classification Voluntary Deductions:
• Loans
Primary Classification Direct Payment:
• Expense Reimbursement

The selection of the secondary classification will drive the questions of the element template and the characteristics of the
element that is created. For the allowances created as standard earnings these characteristics are described in more detail in
the section of element allowances.
Subclassifications
Subclassifications are connected to primary classifications. The following subclassifications are defined for the Oman
Primary Classification Standard Earnings:
• Subject to Social Insurance

• Disposal Income Court Order
Primary Classification Supplemental Earnings:

• Disposal Income Court Order
Primary Classification Information:
Primary Classification Absences:
All these five subclassifications are attributed by default to the elements created for the corresponding primary
classification.
During implementation, if there is a requirement to define an element that is not a standard earnings, but is part of the
contributory salary, the steps to follow are:
1. Define a new subclassification and the corresponding subclassification rule.

2. Feed the contributory balance with this subclassification.
Reviewing Classifications
1. To review classifications , log in with a Payroll Manager role
2. Navigate to the Element Classifications task in the Payroll work area.
3. Select the appropriate Legislative Data Group (LDG) and view all the primary classifications defined for the
legislation connected to the selected legislative data group.
4. Select a specific classification to view secondary classifications and subclassifications defined for the primary
classification.
Element Templates
A specific element template is available in Oman localization for the following primary classification:
For all other primary classifications, the standard global template is used when creating Oman elements.
When selecting Standard Earnings as primary classification:
• If no secondary classification is selected, then the standard element template is followed, and no specific Oman
consideration is applied.
• If social allowance secondary classification is selected, then earning element is created following Oman specific
rules that apply to social allowance.
From a template questionnaire perspective, there is no difference with the global standard template, but in this case, set of
Oman specific objects are created in addition to the global on
Further information is provided in the element details section of the document.

Availability of Element Template Functionality Based on Product License
The availability of features in element templates depends on the type of license you have.
HR-Only: As an HR-only customer, you get access to the basic version of the element templates. These templates create the
element and you need to create the input values, formulas, balances to meet your business requirements.
Payroll Interface: As a payroll interface customer, you get access to a number of payroll features which are not available to
an HR-only customer. This includes access to the full earnings element that will create the element, input values, formulas,
balances. These earnings elements can be processed through the calculation to Gross process which is also available to
Payroll Interface customers. Any other type of element, such as deductions, is created using the basic version of the element
templates and you need to create the input values, formulas, balances.
Payroll: A payroll customer gets access to the full set of earning and deduction templates. These templates create the
element, input values, formulas, balances.
Disclaimer Note: If you want to use an element in the payroll process, then the element must be created after the
payroll license is set. This creates the full set of data needed for payroll processing, such as element definition,
input values, balances, formulas. If payroll license is set after the element is created the above data will not be
created.
Setting up Licenses
1. Navigate to the Features by Country or Territory task using the Functional Setup Manager (FSM)
2. Search with Legislation Code or Legislation to verify the license.
You can enter following values:

• Human Resource or None: This must be set when customer is having an HR only license.
• Payroll Interface: This must be set when customer is HR only and has a payroll interface license.
• Payroll: This must be set when customer has both HR and Payroll licenses
Creating a Standard Earnings Element: Worked Example

This worked example describes how you can create a standard earnings element
1. Sign in to the Oracle Fusion application using a role that has the profile of a Payroll Manager:
2. Select Elements in the Payroll Calculations work area:
3. On the Elements page, click Create.
4. On the Create Element window, select the LDG and a primary classification, then click Continue:
5. Complete the fields on the Create Element page, and then answer the questions:

6. Click Next, and complete the rest of the questionnaire
7. Verify the information and click Submit to create the new element
8. On the Element Summary page, provide additional information as needed, such as input values, processing rules,
and eligibility:
Use the Element Overview panel to navigate through the setup pages.
Note: Input values have been created for this element to receive information needed to calculate the value of the allowance.
Note: Element eligibility must be defined so that the element is linked to an element entry.
9. In the Element Overview panel, select Actions, and Create Element Eligibility.

10. On the Element Eligibility page, enter a name in the Element Eligibility Name field and click Submit.
Note: If you enter only a name and no eligibility criteria, the element is eligible for all employees.
11. The Balance Feeds link shows the balances that are fed by this element. All the balance feeds are generated
automatically through the element classification defaulting mechanisms (and the related balance feeds by
classification).

Proration and Retroactivity
In scenarios where an employee has a mid-period change, for example, changing the basic salary during a month, a set of
elements must be prorated.
In scenarios where the employee has a retrospective change, the payroll process must recalculate payroll for past periods
and generate retroactive deltas to be processed in the current period.
Proration
Prorating Earnings
When creating an element through element template you must consider if the element must be prorated for mid-period
events. The behavior of the element is managed in the first stage by the answering the question related to proration
contained in the questionnaire:
• If the answer is No, mid-period changes will not affect the calculated value of the element.
• If the answer is Yes, the template prompts you to enter the Proration Group. The mid-period changes may now
potentially affect the calculated value of the element.
For elements enabled for proration the template associates by default the global standard proration formula:

Proration formula GLB_EARN_PRORATION uses natural days proration. For example, in case of hire or termination in the
course of the month, it uses as proration factor:
Employment days in the period or Calendar days in the period
To meet different business requirements, implementation teams can create your own specific proration formula and attach
it to the elements that follow these business requirements.
Events that trigger the proration calculation are identified through the selected proration group.
2. Navigate to the Event Groups task in the Payroll work area.
Select Entry Changes for Proration
3. View the changes that trigger proration.
No specific event group is predefined for the Oman localization. Additional event groups can be added in the
implementation phase.
Retroactivity
Retro Earnings
When creating an element through the element template you must consider if the element must be retroactively processed
for prior payroll events. Behavior of the element is managed in the first stage by answering the question related to
retroactive changes contained in the questionnaire.
• If the answer is No, prior changes will not affect the calculated value of the element.
• If the answer is Yes, the template prompts you to enter the Event Group. The prior changes may now potentially
affect the calculated value of the element.
Events that trigger the retro calculation are identified through the selected retro group.
2. Navigate to the Event Groups task in the Payroll work area.
3. Select Entry Changes for Retro.
4. View the changes that trigger retro.
No specific event group is predefined for the Oman localization. Additional event groups can be added in the

Oman Specific Retro
The following retrospective elements are created for calculating Social Insurance Retro:
• Contributory Salary Retro

• Employee Basic Social Insurance Retro
• Employee Social Insurance Arrears Retro
• Employee Unemployment Social Insurance Retro
• Employer Basic Social Insurance Retro
• Employer Hazards Social Insurance Retro
• Employer Unemployment Social Insurance Retro
• Kuwait Employee Social Insurance Retro
• Kuwait Employer Contributions paid by Employee Retro
• Kuwait Employer Payment borne by Citizenship Country Retro
• Kuwait Employer Payment paid by Employee Retro
• Kuwait Employer Social Insurance Retro
• Bahrain Employee Social Insurance Retro
• Bahrain Employer Contributions paid by Employee Retro
• Bahrain Employer Payment borne by Citizenship Country Retro
• Bahrain Employer Payment paid by Employee Retro
• Bahrain Employer Social Insurance Retro
• Qatar Employee Social Insurance Retro
• Qatar Employer Contributions paid by Employee Retro
• Qatar Employer Payment borne by Citizenship Country Retro
• Qatar Employer Payment paid by Employee Retro
• Qatar Employer Social Insurance Retro
• Saudi Employee Social Insurance Retro
• Saudi Employer Contributions paid by Employee Retro
• Saudi Employer Payment borne by Citizenship Country Retro
• Saudi Employer Payment paid by Employee Retro
• Saudi Employer Social Insurance Retro
• UAE Employee Social Insurance Adjustment Retro
• UAE Employee Social Insurance Retro
• UAE Employer Contributions paid by Employee Retro
• UAE Employer Payment borne by Citizenship Country Retro
• UAE Employer Payment paid by Employee Retro
• UAE Employer Social Insurance Adjustment Retro
• UAE Employer Social Insurance Retro
THIRD-PARTY ORGANIZATION OR PERSON

Deductions from the employees can be paid to third parties, that is, a court, an external organization, or an individual
directly.
Third-Party Organization
To create a third-party organization:
1. Select the Third Parties task from the Payroll work area:
2. Click Create to create a new third party.

3. Select the Organization Party Type.
4. Select External Payee as Party Usage Code.

5. Click Continue.
6. Enter the name of the third party.

7. Click Add in the Addresses region to add a new address.
8. Click Add in the Contacts region to add a new contact.
9. Click Submit.
10. Select the legislative data group to create Payment method to the third party.
11. Click Yes.
12. Select Organization Payment Method.
Note: The Organization Payment Method being selected must be added in Valid Payment Methods of Payroll
Definition.

13. Click Add to create a bank account.
Note: The Bank Accounts region is displayed when the organization payment method is EFT.
14. Click Submit.
Third-Party Person
To create a third-party person:
1. Select the Third Parties task from the Payroll work area:
2. Click Create to create a new third party.
3. Select the Person Party Type.
4. Click Continue.
5. Enter the name of the person.
6. Click Add in the Addresses region to add a new address.

7. Click Add in the Contacts region to add a new contact.
8. Click Submit.
9. Select the legislative data group to create Payment method to the third party.
10. Click Yes.
11. Select Organization Payment Method.
Note: The Organization Payment Method being selected must be added in Valid Payment Methods of Payroll Definition.
12. Select the Person in the Payroll Relationships region for whom you want to associate this third party.
13. Click Add to create a bank account.
Note: The Bank Accounts region is displayed when the organization payment method is EFT.
14. Click Submit.
BALANCES
Payroll balances show the accumulation of values over a period of time. The values can be currency, hours, or any other
numeric value. Most of the required balances are predefined and additional balances are created automatically when
creating elements. Implementation teams can edit the definition of these generated balances, or create additional balances
for calculations or reporting.

When a balance definition (balance type) is created, balance category and a unit of measure can be selected. Each balance
definition is grouped in a predefined balance category for quicker processing. Balance categories are legislation-specific and
cannot be modified.
Each balance can have multiple dimensions, which define the specific value to be retrieved. Balance dimensions are
predefined and typically combine these components:
• Time span, such as run, period to date, or fiscal year to date
Employment relationship level, either assignment, terms, or payroll relationship
Context, required for some balances only, such as tax reporting unit (TRU), element, or payroll
When a specific balance dimension is linked to a balance type, this results in creating a defined balance.
The value assigned to a balance during processing is determined by balance feeds defined for the balance.
Balance feeds can be by element input values or by balance classification run results.
Balance Feeds by Element: Indicates one or more element input values to add or subtract from a balance. If a balance is
fed by a single element, it is called a primary balance.
Balance Feeds by Classification: Indicates that all elements belonging to a specific classification will feed that
balance. Any type of classification can be used to feed the balance but it is to be remarked that if a primary
classification is added as a balance feed, the children of this classification from the secondary or subclassifications
cannot be added. Also, you cannot use both secondary classifications and subclassifications in the same balance
feed.
Balances are important for reporting because in most of the reports balances represent the values that are displayed in the
output. Balances can be aggregated (through balance attributes) in balance groups and balance groups are the entities that
are used by payroll reports to identify the balances to be included in specific sections of the report.
A set of balance definitions are provided by global payroll, but localizations have a predefined set of definitions in addition to
global data.
Oman localization has predefined data related to the following balance definitions:
• Balance Categories (enabling of global categories)
• Balance Types
• Balance Dimensions and Usages (enabling of global dimensions)
• Defined Balances
• Balance Groups and Attributes
Balances Definitions predefined for Oman

This section describes the predefined balance definitions for the Oman localization and related tasks at implementation
level.
A detailed list of balances definitions predefined for Oman can be found in the balances spreadsheet
Oracle_Fusion_HRMS_OM_Payroll_Balances.xlsx on My Oracle Support (MOS).
BALANCE CATEGORIES
The following global categories are enabled for Oman:
• Absences
• Hours
• Absence Accruals
• Total Absences
• Days
• Other Units
• Earnings
• Employer Charges
• Total Employer Charges
• Information
• Miscellaneous

• Social Insurance Deductions
• Total Social Ins Deductions
• Direct Payments
• Total Direct Payments
• Total Payments
• Total Involuntary Deductions
• Pre-Statutory Deductions
• Total Pre-Statutory Deductions
• Total Voluntary Deductions
• Total Deductions
• Total Earnings
• Total Supplemental Earnings
Note: When creating a new balance in implementation phase, it must be associated to one of the predefined categories and
categories cannot be added or modified in implementation phase.
BALANCE TYPES
Balance types predefined by Oman localization are listed in the Balances Spreadsheet:
In this section describes the balances that affect payroll calculation and that are likely to be fed by elements created in the
A separate section is dedicated to the net pay balance due to its impact on the payment process.
Gross Earnings
Balance Gross Earnings collects all the gross earnings applicable for Oman and is fed by 3 primary classifications:
• Absences
All elements created at the implementation level with these primary classifications feed this balance.
Social Insurance
Balance Subject to Social Insurance: Collects all the earnings that are liable to Social Insurance and fed by subclassification
Subject to Social Insurance.
This subclassification is associated by default to earnings with primary classification Standard Earnings and Information and
so all elements created in the implement phase with these primary classifications feeds this balance.
The value of this balance is used as contributory salary if the same is not overridden.
Balance Contributory Salary is used as base in the contributions calculations. Subject to Social Insurance is designed to
store the earnings that make up the contributory base, but for private sector the base can be overridden or adjusted so,
eventually, if there is no override or adjustment balance, contributory salary balance is equal to balance Subject to Social
Insurance, otherwise it will account for the override or adjustment.
Net Pay
During the payment process, the net pay balance is used to store the amount to be transferred as remuneration for the
payee. A net pay balance, named Net Pay, is predefined for BH, and no additional setup is required during the
To view the Total Pay balance:

1. Select Balance Definitions in the Payroll or Setup and Maintenance work areas.

2. Enter Net Pay in the Name field and select a OM LDG, then click Search
3. Click the Net Pay balance in the Search Results to view the balance information
4. Click Balance Dimensions in the left panel to display the dimensions associated with this balance
Note: The Relationship Payments balance dimension is associated with this balance.
5. Click Balance Feeds in the left panel to display the classification that feed this balance
Note: All elements created in the implementation phase with these primary classifications feed this balance.
BALANCE DIMENSIONS AND DEFINED BALANCES

Balance dimensions enabled by Oman localization are listed in the Oman Balances Spreadsheet
As per the original employment model, balances are maintained at all three levels, that is: Payroll Relationship, Payroll
Assignment, and Group levels.
The only dimensions that can be selected when creating a balance in the implement phase are dimensions enabled
by Oman localization.
Combining balance types and enabled dimensions Oman has delivered a set of defined balances that are listed in the
Balances Spreadsheet Oracle_Fusion_HRMS_OM_Payroll_Balances.xlsx on My Oracle Support (MOS).
Balances and SOE

The online Statement of Earnings (SOE) is a feature within payroll that allows the end-user to view all the relevant
information for an individual employee payroll run or a prepayment in a single place so that the results can be easily viewed
and verified.
This typically covers personal information, employment information, payroll information, absence information, run results,
messages and balances.
The SOE feature is part of global product and has been customized to meet country specific requirements.
Scope of this document is not to describe overall usage of the feature but to explain:
• Criteria that drives the inclusion of specific balances in certain sections (the ones that contain balances results) of
the SOE
• Predefined data for the SOE for Oman localization
• How you can include user-defined balances in SOE
SOE SECTIONS AND RELATED BALANCES

Payroll results are displayed in the SOE in several sections:
The following paragraphs mention the sections populated by balance results and for each section the balance groups and
related attributed connected to the section are listed.

Note: Oman localization has not predefined any balance group or attribute for SOE, so the global balance groups are used.
Quick Reference Summary
This section is additionally split into four tabs of which, the following two contain data retrieved from balance results:
• Gross to Net: This tab includes results for balances (defined balances) connected to balance group:
GLB_SUMMARY_GROSS_TO_NET_BALANCE_GROUP that is connected to attribute
GLB_SUMMARY_GROSS_TO_NET_ATTRIBUTE
• Information: This tab includes results for defined balances connected to balance group:
GLB_SUMMARY_INFORMATION_BALANCE_GROUP that is connected to attribute
GLB_SUMMARY_INFORMATION_ATTRIBUTE
Earnings
This section includes results for defined balances connected to balance group: GLB_SOE_EARNINGS_BALANCE_GROUP that
is connected to attributes:
• GLB_EARNINGS_ATTRIBUTE
• GLB_SUPPLEMENTAL_EARNINGS_ATTRIBUTE
• GLB_TAXABLE_BENEFITS_ATTRIBUTE
Deductions
This section includes results for defined balances connected to balance group: GLB_DEDUCTIONS_BALANCE_GROUP that is
connected to attributes:
• GLB_PRE_STAT_DEDUCTIONS_ATTRIBUTE
• GLB_INVOLUNTARY_DEDUCTIONS_ATTRIBUTE
• GLB_VOLUNTARY_DEDUCTIONS_ATTRIBUTE
• GLB_TAX_DEDUCTIONS_ATTRIBUTE
• GLB_SOCIAL_INSURANCE_DEDUCTIONS_ATTRIBUTE
Information
This section includes results for defined balances connected to balance group: GLB_INFORMATION_BALANCE_GROUP that
is connected to attribute GLB_INFORMATION_ATTRIBUTE
Employer Contributions
This section includes results for defined balances connected to balance group:
GLB_SOE_EMPLOYER_CHARGES_BALANCE_GROUP that is connected to attributes:
• GLB_EMPLOYER_TAXES_ATTRIBUTE
• GLB_EMPLOYER_CHARGES_ATTRIBUTE

Direct Payments
This section includes results for defined balances connected to balance group: GLB_DIRECT_PAYMENTS_BALANCE_GROUP
that is connected to attribute GLB_DIRECT_PAYMENTS_ATTRIBUTE
Taxable Benefits
This section includes results for defined balances connected to balance group: GLB_TAXABLE_BENEFITS_BALANCE_GROUP
that is connected to attribute GLB_TAXABLE_BENEFITS_ATTRIBUTE
PREDEFINED SOE DATA FOR OMAN

Oman localization uses the global Balance Groups for SOE and consequently the global attributes.
To display balances seeded by Oman localization in sections where attributes are not generated by default, predefined
assignment of attributes to a set of defined balances are delivered for Oman localization.
The complete list of Oman delivered associations between defined balances and attributes is contained in the Oman
Balances Spreadsheet Oracle_Fusion_HRMS_OM_Payroll_Balances.xlsx on My Oracle Support (MOS).
For Oman, the following connections are defined between balances and sections of SOE report.
Gross to Net Summary Section

• Earnings
• Employee Social Insurance
• Net Pay
• Social Insurance
Information Summary Section

• Contributory Salary
Attributes cannot be created or modified in the implementation phase.
USER-DEFINED BALANCES AND SOE

When you need to create a defined balance with a specific balance category that is mapped in the balance attributes
defaulting setup, then an attribute is associated to the defined balance. This occurs also for balances created via template. If
that attribute is connected to a balance group that is displayed in a section of SOE, then also the balance you defined is
viewable in SOE.
PAYROLL SETUP
Before processing payroll or post payroll processes a set of base tasks must be performed by the implementation team to
define basic structures such as:
Banks and Bank Accounts

Organization Payment Methods
Consolidation Groups
Payroll Definitions
Salary Basis
Compensation Elements
Payments Setup
Please refer to the Oracle Fusion HRMS (Oman): HR Implementation and Functional Considerations document for Oman
Payments setup

Consolidation Groups and Payroll Definitions
Please refer to the Oracle Fusion HRMS (Oman): HR Implementation and Functional Considerations document for details on
Consolidation groups and Payroll Definitions.
Salary Basis and Compensation

Once you have created the elements that are meant to hold the payee basic salary and compensation information, you can
perform the setup required to attribute the gross compensation to the payee. Please refer to the Oracle Fusion HRMS
(Oman): HR Implementation and Functional Considerations document for details on Salary Basis and Compensation.
Currency Conversion Rates

Currency conversion rates must be set up before running a payroll for GCC citizens.
Currency Conversion Rates

To set up currency conversion rates:
1. Sign in to the application with a role that has implementation privileges, such as APPL_IMP_CONSULTANT.
2. Select Manage Daily Rates in the implementation project task list.
3. On the Manage Daily Rates page, navigate to the Daily Rates tab and click Create in Spreadsheet
4. Once the Spreadsheet gets downloaded, it will prompt you to log on. Once you are logged on, enter the details as
indicated below. Click Submit and then click OK. The Record Status column will be updated with Row Inserted
Successfully if the records are loaded to the interface table.
To associate a currency rate type to an enterprise:
1. Select Manage Enterprise HCM Information in the implementation project task list.
2. Update the ‘Transaction Processing Conversion Rate Type’ field with the desired Currency Rate Type.
Note: Enterprise changes are effective as per the date set in the Effective Start Date field.
Note: Payroll Process will use the default conversion rate type Corporate if no conversion rate type is associated to
Enterprise.
3. Click Done.
HIRING AN EMPLOYEE AND RUNNING PAYROLL FOR OMAN: WORKED EXAMPLE

In this section we will go through the process of hiring a OM employee and running a payroll for the same. More information
on the hire task for Oman can be found in Oracle Fusion HRMS (Oman): HR Implementation and functional considerations.
Hire an employee
To perform tasks related to person and employee management, you would typically sign- in to the application using a role
connected to a user, such as Human Resource Specialist.
The new hire process is the first task in the workforce lifecycle.
To hire an employee:
1. Select New Person from the Quick Actions menu.
2. Select the sections for which data is to be entered.
Note: Some sections such as Personal Details and Employment info are displayed mandatorily.
3. 3. Enter the details in the applicable sections.
11. 4. On the Person Details section, provide the required information:

12.
13.
14. 5. On the Employment Details section, provide the required information:

Assign additional information
Now that the employee has been hired a set of data needs to be assigned to the employee in order to be processed and
paid.
Basic information to be assigned is:
Remuneration Information
Calculation Cards
Personal Payment Method
Remuneration
Remuneration to the employee can be assigned either through Salary Basis and Compensation (that will automatically
generate element entries, or directly create element entries.
In the example below, you enter remuneration using the setup for Salary Basis and Compensation.
Adding a Salary
4. Sign in to the Oracle Fusion application using a role that has the profile of a Payroll Manager (PAY_MGR_ALL).
5. Select Change Salary in the Person Management work area:

6. 3. Click Propose New Salary, then complete the fields on the Add Salary window:
7. 4. On the Manage Salary page, select the previously created Salary Basis and enter a Salary Amount:
Note: Selectable salary basis are limited to the ones defined for the LDG assigned to the payroll statutory unit connected to
the legal employer of the employee.
When you save this record, an element entry with the specified start and end dates is automatically generated. You can view
the entry on the Manage Elements Entries page:
Note: The salary basis has as annualized value of the compensation.
Adding Compensation
1. Select Individual Compensation in the Person Management work area:
2. On the Manage Compensation page, click Award Compensation
3. On the Award Compensation window, select the previously created compensation plan and enter the compensation
amount.
When you save this record, an element entry with the specified start and end dates is automatically generated. You can view
the entry on the Element Entries page.

Calculation Cards
For payroll to be processed for a Oman employee, the Employee Social Insurance Details card must be present. This card is
automatically generated upon hire process if the citizenship information is updated.
To view, edit and create calculation cards:
4. Select the Calculation Cards task in the Payroll work area.
5. Select the employee and verify that Employee Social Insurance Details card is created:
Note: If the card was automatically created as part of the new hire process, the value for Citizenship field is derived
from Person Information. The default value for the Exception Type field is blank. If no value is specified, and the
employee is a UAE citizen, then the employer and the employee each pay their contributions.
Personal Payment Method

Please refer to the Oracle Fusion HRMS (Oman): HR Implementation and Functional Considerations document for Oman
Personal Payments setup.
Run Payroll and Review Results

Now that the basic information has been entered, it is possible to run payroll and review the related results. This section
describes the minimum data needed to run payroll, more detail on payroll process can be found in the core guides.

Payroll run
1. Select the Payroll task from the Navigator.
2. Select the Submit a Flow task in the Flow Submission and Results work area.
3. Select the LDG for which the payroll is to be calculated and flow pattern Calculate Payroll.
4. Enter the parameters to run the report.
Payroll Flow: Identifier for the process that is being run. You can enter a value each time the process is executed. You
can choose any format to describe the payroll flow.
Payroll: Payroll definition for which payroll is being run.
Payroll Period: Period for which payroll is calculated. For OM, the period is always monthly.
Run type: Optionally, the report can be run for a specific establishment.
Specify the flow interaction range and schedule the process date and time if required. Review the details before you submit
the process.
5. Click Submit.
Verify the process completion and view the generated report.
Note: A message appears to verify the payroll flow. If the process is complete, you can view the report.
Review Payroll Results

You can review the payroll results once the process is completed successfully:
Payroll results can be reviewed for the person:

6. Select the Process Results Summary task in the Payroll work area.
7. Filter the results using the appropriate parameters such as for example the Payroll Name (Payroll Definition):
8. Select the desired row and review the results using SOE.
Note:
The income subject to social insurance is made up of the two earnings that were assigned to the employee through the
remuneration definition.
Deductions are driven by the social insurance calculation cards.
Mandatory Post-Payroll Processes

Once payroll has been executed a set of mandatory intermediate post payroll processes need to be run:
• Calculate Prepayments
• Archive Periodic Payroll Results
These are needed as prerequisites to run the set of post payroll processes such as payments, payslip and regulatory
reporting.
Calculate Prepayments

Calculate Prepayments is the process in which the amount paid to the employees is split based on personal payment
methods. If there is no personal payment method, then the process will use the Organization payment method.
To run the calculate prepayments process:
2. Select the LDG for which the process is being run and the flow pattern Calculate Prepayments.
3. Enter the parameters to run the report:
• Payroll Flow: Identifier for the process that is being run. You can enter a value each time the process is executed.
You can choose any format to describe the payroll flow.
• Payroll: Payroll definition for which payroll is to be run.
• Process Start Date: Start date of the process for which the prepayment is run.
• Process End Date: Start date of the process for which the prepayment is run.
the process.
4. Click Submit.
6. Filter the results using appropriate parameters such as flow name.
7. Review the results at the person level.

Archive Periodic Payroll Results
This is the process in which employee and Organization data gets archived. This data will be used in statutory reports or
user created reports.
To run the Archive Periodic Payroll process:
1. Select the Submit a Flow in the Payroll work area under My client Groups.
2. Select the LDG for which the process is to be run and flow pattern Archive Periodic Payroll Results
3. Enter the parameters to be used to run the report:
• Process End Date: End date of the process for which the prepayment is run.
the process.
4. Click Submit.
Note: A message appears to verify the payroll flow. If the process is complete, you can view the report
6. Filter the results using appropriate parameters such as flow name.
7. Review the results at the person level:

PAYMENTS PROCESSING AND PAYSLIP
Once payroll has been executed a set of post-payroll processes need to be accomplished. Two basic post-payroll processes
are:
• Payment’s processing
• Payslip
• This section describes:
• What has been predefined by Oman localization to meet the OM-specific business requirements.
• The process to generate the report outputs.
• A sample output of the reports.
Payments Processing
Global payroll provides a global process that generates .XML file containing data generated by payroll that is relevant for
payments processing.
The Oman localization has predefined an e-text template, based on the Electronic Fund Transfer System (EFTS), in Oracle
Business Intelligence Publisher which generates an EFT file from the XML.
To generate the EFT file, no setup is required in the implementation phase.
Report Execution
2. Select the LDG for which the process is to be run and flow pattern Make EFT Payments.
3. Enter the parameters to be used to run the report:
• Organization Payment Method: Process the employees with the selected organization payment method.
the process.
4. Click Submit.
5. View the results:
6. Select the generated file and view the output:

Note: Once payment process is executed for a person for a specific period, the person will not be selected if the process is
rerun. To rerun the payment for an already processed person, the whole execution needs to be rolled back.
Generate Cheque Payments

The global Generate Cheque Payments process generates an XML output. This XML output will contain the data that is to be
printed on the cheque template.
Oman localization has predefined a Rich Text Format (RTF) template in BIP that generates a printout from the XML. The
Generate Cheque Payments report has a predefined structure for OM and consists of two sections:
The first section will contain the following information:
• Employee Name
• Cheque Date
• Cheque Number
• Net pay in numbers and letters.
The second section contains:
• Payroll Relationship Number
• Employee Name
• Employee Organization Name
• Organization Location
• Job Title
• List of earnings elements and amounts
• List of deductions elements and amounts
• Total amount to be paid
Note: All earnings with classification Standard Earnings, Direct Earnings, Supplemental Earnings templates are displayed
under Earning region, and all the deductions with classifications Voluntary and Involuntary deductions are displayed under
deductions region.
To generate the cheque payments, no set up is required in the implementation phase.
Report Execution
2. Select the LDG for which the process is to be run and flow pattern Generate Check Payments.
3. Enter the parameters to run the report:
• Payroll: Payroll definition for which payroll is being run.
• Organization Payment Method: Process the employees with the selected Organization Payment Method OPM.
• Start Check Number: This is not applicable to the OM. You can enter any value here.
the process.
4. Click Submit.
5. View the results:
6. Select the generated file and view the output:

Payslip
You can generate a payslip for each payment made for an employee for a given pay period, after successfully completing
the Event Archive for Payroll and Generate Cheque Payments or Direct Deposit processes. Information such as Employee
Details, Payroll Information, Earnings, and Payment Methods are displayed in a payslip, as read-only.
Note: For payslip translation see the Administering Global Payroll Guide, Chapter 7 - Auditing and Reporting.
The payslip consists of the following regions:
• Employee Details
• Payroll Information
• Summary of Payments
• Earnings
• Deductions
• Payment Information
Payslip Regions
This section describes in detail the content of each region and what you can set up in the implementation phase.
Employee Details
This region displays personal details of the Employee.
This is predefined and the following details are displayed in this region:
• Employee Name
• Person Number
• Payroll Relationship Number
• Assignment Number
• Payroll
• Job

• Position
• Nationality
• Employer Name
• Location
Payroll Process Information

This region displays the details of the payroll that has been processed for the employee.
• This is predefined and the following details are displayed in this region:
• Period Type
• Period Start Date
• Period End Date
• Payment Date
• Base salary
Summary of Payments
This region displays the payment summary derived from the payroll run.
As by predefined setup set the following details are displayed in this region:
• Total Earnings
• Total Deductions
• Total Pay: net pay value - difference between the total earnings value and the total deductions.
Earnings
This region contains all the elements paid to the employee.
Elements having the following primary classifications are considered to be payments:
• Direct Payments
For any element, created at implementation phase, and having the above primary classifications (with value different from
zero) are included in this region.
Deductions
This region contains all the employee deductions.
Element having the following primary classifications are considered to be deductions:
• Pre- Social Insurance Deductions
• Social Insurance
For each element, whose calculation value is not zero, the amount and description are printed in the payslip.
Any element, created at implementation phase, and having the above primary classifications is included in this region.
Payment Information
This region contains details about the payment method and bank details for the employee to whom the payment has been
made.
This is predefined and the following details are displayed in this region:
• Cheque / Deposit Number
• Bank Name
• Branch Name
• Account Number
• Currency
• Payment Amount

Report Execution
1. Select the Submit a Process or Report task in the Payment Distribution work area.
2. Select LDG for which the process is to be run and flow pattern Generate Payslips.
3. Enter the parameters used to run the report:
the process.
4. Click Submit.
5. Click View Results for each employee.
6. Click Oman Printed Payslip.pdf.
Rollback Process
This is the process in which we can roll back the Calculate Payroll, Pre-Payment, Cheque Payment, EFT Payment, Payroll
Archive, Payslip, Statutory reports or User Created Reports.
Rollback Execution
2. Select LDG for which the process is to be run and the flow pattern Roll Back Process
3. Enter the parameters used to run the report:

• Payroll Process: Identifier for the process being rolled back.
• Payroll Relationship Group: Optional. You can provide Payroll Relationship Group.
• Reason: Optional. You can provide the reason for the rollback.
Specify the flow interaction range and schedule the process date and time if required. Review the details before you
submit the process.
4. Click Submit.

Payroll Cycle Flow
Payroll cycle flow consists of payroll tasks in a pre-defined sequence for each payroll period.
The payroll flow has the following sequence:
1. Batch upload
2. Payroll Run
3. Prepayments
4. Archive Periodic Payroll Results
5. Make EFT Payments
6. Generate Check payments
7. Run Payroll Register Report
8. Generate Payslips
9. Verify Payslips
10. Run Payment Register Report
11. Verify Payments
Flow Execution
2. Select the LDG for which the process is to be run and the flow pattern Payroll Cycle.
3. Enter the following parameters to run the flow:
• Payroll Flow: Identifier for the process being run. You can enter a value each time the process is executed. You can
choose any format to describe the payroll flow.
• Payroll: Payroll definition for which the flow is being run.
• Payroll Period: Payroll period for which the payroll process is being run.
• Process End Date: End date of the process for which the prepayment is being run.
• Run type: Optional. The flow can be run for a specific establishment.
• EFT Organization Payment Method: Process by which the employees with the selected Organization Payment
Method OPM are paid through bank.
• Check Organization Payment Method: Process by which the employees with the selected Organization Payment
Method OPM are paid through cheque.
• Check Number: Required, if paying the employees through cheque.
Specify the flow interaction range and schedule the process date and time, if required. Review the details before you submit
the process.
4. Click Submit.
5. Verify the process completion and view the generated report.
Note: A message is displayed for you to verify the payroll flow.

TERMINATION
There are no separate post termination processes for Oman. Terminated employees are not considered for social insurance
processing in the month of termination.
Earnings can be paid after termination. In this case, it is important to check the payroll status of the payee to be sure that it is
included in the payroll run. The possible HR statuses that can be enabled are:
7. Payroll Eligible: Payee is included in the payroll run.
8. No Payroll: Payee will not be included in the payroll run.
9. Process When One Time Element: Payee will only be included in the payroll run if that have a non-recurring
(unprocessed) element entry for the payroll period.
10. Process When Earning: Payee will only be included in the payroll run if they have an element entry, for the payroll
period, for an earning having classifications with Process When Earning flag set to Yes.
Users can check the Pay Status to determine if the assignment will be processed in the payroll after the termination based
on the assignment status.
Steps to check Pay Status

11. Go to Manage Assignment Status and click the link Go To Task.
12. Check the Pay Status based on the Assignment status after termination.
In the termination month, gratuity payment is automatically generated, if the employee is eligible. This amount is added to
the employee’s net pay. Rules for determining the gratuity payment are described gratuity calculation section.
When a terminated employee is rehired, the employee is treated as a new employee. There is no linkage to the old records of
the employee. In effect, a rehire is treated as a new employee with a new payroll relationship.
Worked Example – Terminating an Employee

This section describes termination of an employee and its effect of calculation and reporting.
To terminate a work relationship:
13. Log in with an HR Specialist role (HR_SPEC_ALL).
14. Select Work Relationship in the Person Management work area and select Terminate from the Actions menu.
15. On the Terminate Work Relationship page, enter the details of the termination, including the termination reason.
16. Review and Submit.
Gratuity Calculation Card

If the gratuity to be paid checkbox is selected in the employer gratuity calculation card, the action of termination will trigger
the automatic creation of the employee gratuity calculation card:
Running Payroll
After verifying that the calculation card is created (month when the employee is terminated), payroll can by be run for the
designated Payroll Definition.
Note:

Gratuity payment is triggered in line with the amount entered as override.
Social insurance deductions are calculated to zero since we are in the month of termination.
Reverse or Correct Termination

A gratuity calculation card is automatically created when terminating a worker, and the latest gratuity payment date will be
created as the last day of the month in which the termination date falls.
If the termination is reversed, the calculation card will remain as of the effective date it was originally created. However, the
latest gratuity payment date will be null.
If the termination date is corrected to an earlier date, the effective date of the calculation card will be updated to the new
date, and the latest gratuity payment date to the last day of the month of the new termination date.
If the termination date is corrected to a future date, there will be no change to the effective date of the calculation card, but
the latest gratuity payment date will be the last day of the month of the new termination date.
If an employee is rehired and is subsequently terminated again, the same calculation card will be reused.
GLOSSARY
Business unit
Business Unit is a unit of an enterprise that performs one or many business functions that can be rolled up in a management
hierarchy. A business unit can process transactions on behalf of many legal entities.
Consolidation group
Consolidation group is a grouping of payroll runs within the same time period for which you can schedule reporting, costing,
and post-run processing.
Calculation card
A mechanism for capturing values required for calculating payroll deductions at the level of a payroll statutory unit, tax
reporting unit, or payroll relationship. At the payroll relationship level, this is called a personal calculation card. At the tax
reporting unit level, it is the employer deduction information card, also referred to as the TRU card.
Calculation component
An individual calculation captured on a calculation card. Typically relates to a calculation element for which the calculation
component creates an entry.
Department
Department is a division of a business enterprise dealing with a particular area of activity.
Division
Division is a business-oriented subdivision within an enterprise. Each division is organized to deliver products and services
or address different markets.
Enterprise
Enterprise is an organization with one or more legal entities under common control.
Flexfield
Grouping of extensible data fields called segments, where each segment is an attribute added to an entity for capturing
additional information.
Geography structure
A hierarchical grouping of geography types for a country. For example, the geography structure for United States is: State,
County, City, and then Postal Code.

Identifying jurisdiction
The first jurisdiction a legal entity or establishment must register with to be allowed to do business in a country.
Legal authority
A government or legal body that is charged with powers such as make laws, levy and collect fees and taxes, and remit
financial appropriations for a given jurisdiction.
Legal employer
Legal employer is a legal entity that employs people.
Legal entity
An entity is identified and given rights and responsibilities under commercial law, through the registration with the country's
appropriate authority.
Legal jurisdiction
Legal jurisdiction is a physical territory, such as a group of countries, single country, state, county, parish, or city, which
comes under the purview of a legal authority.
Legal reporting unit

Legal reporting unit is the lowest level component of a legal structure that requires registrations. Used to group workers for
the purpose of tax and social insurance reporting or represent a part of your enterprise with a specific statutory or tax
reporting obligation.
Legislative data group

Legislative data group is a means of partitioning payroll and related data. At least one legislative data group is required for
each country where an enterprise operates. Each legislative data group is associated with one or more payroll statutory
units.
Location
Location is the physical address of a workforce structure, such as a department or a job.
Payroll statutory unit

A legal entity registered to report payroll tax and social insurance. A legal employer can also be a payroll statutory unit, but a
payroll statutory unit can represent multiple legal employers.
Process configuration group

A group of action parameters that set options, mainly related to performance and logging, for payroll processes. A few
parameters control other features, such as element templates, dates, and report output location.

Registration
The record of a party's identity related details with the appropriate government or legal authorities for the purpose of
claiming and ensuring legal and or commercial rights and responsibilities.
Reporting establishment
An organization used in the production of human resources (HR) reports that are required by government agencies.
Tax reporting unit

Tax reporting unit is a legal entity that groups workers for the purpose of tax and social insurance reporting.
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Oracle HCM (Netherlands) Functional and Implementation Considerations

August, 2023

HCM HRX OM Payroll Setup 23B

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Oracle Fusion HCM (Oman)

Payroll and HR Implementation and Functional Considerations

July 3, 2023 | Version 1.00

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Statutory Deductions and Gratuity Calculation 6

Third-Party Organization or Person 22

Hiring an Employee and Running Payroll for Oman: Worked Example 30

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Payments Processing and Payslip 39

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13.23A 1.0 Initial version

13.23B 2.0 Payslip, Cheque and EFT

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What’s in this Document

Other Information Sources

Comments and Suggestions

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Person and Employment Payroll Data

Payroll Relationships and Assignments

STATUTORY DEDUCTIONS AND GRATUITY CALCULATION

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LEGISLATION GOVERNMENT SECTOR RATE % PRIVATE SECTOR RATE %

LEGISLATION GOVERNMENT SECTOR RATE % PRIVATE SECTOR RATE %

OM 17.5 10.5 + 1 Harzrd

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For the government sector (Omani and GCC):

Social Insurance Calculation for GCC citizens

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Kuwait Government Kuwait Employer Government Sector Social

Kuwait Private Kuwait Employer Private Sector Social Allowance

Saudi Government Saudi Employer Government Sector Social Allowance

Saudi Private Saudi Employer Private Sector Social Allowance Base:

UAE Government UAE Employer Government Sector Social Allowance

UAE Private UAE Employer Private Sector Social Allowance Base:

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Social Insurance Deductions

Legislative Repository for Calculation Information

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SECTOR LENGTH OF HIRE DATE ENTITLEMENT MAX LIMIT

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Private 3+ months 15 Days per year for the first 3

Government 0 – 60 months After 8th March 2011 0

Government 0 – 24 months On or Before 8th March 2011 0

There is no restriction for an organization to follow the above said grades.

Calculation Groups and Calculations

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5. Click Range Values. Details of the calculation factors are displayed:

Monthly Gratuity Accrual

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Primary Classification Supplemental Earnings

Primary Classification Absences:

Primary Classification Voluntary Deductions:

Primary Classification Direct Payment:

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Primary Classification Standard Earnings:

• Subject to Social Insurance

Primary Classification Supplemental Earnings:

Primary Classification Information:

• Subject to Social Insurance

Primary Classification Absences:

• Subject to Social Insurance

1. Define a new subclassification and the corresponding subclassification rule.