In Oracle HRMS, accrual plans are based on elements, formulas, and a net accrual calculation. All of these are available for you to configure so you have complete control over the rules underlying your plans.
Oracle HRMS does not store net accrual totals. It calculates gross accruals dynamically by calling the Accrual formula. The net accrual calculation specifies the element entries that should add to or subtract from this figure to create the net entitlement.
If you use Oracle Payroll, you can set up your accrual plan so that gross accruals are stored in a payroll balance. Each payroll run retrieves the latest balance and calls the accrual formula to calculate new accruals since the end of the last payroll period. This approach - using a payroll balance - is optional but provides performance enhancements if you need to calculate accruals in a batch process. See: Accrual Balances Maintained By the Payroll Run.
The table below further explains the role of the elements, formulas, and net accrual calculation.
| This aspect of an accrual plan ... | Is for... | Generated Automatically? |
|---|---|---|
| Absence element | Storing entries of days or hours absent. | No |
| Accrual plan element | Enrolling employees in the accrual plan. | Yes |
| Carry Over element | Storing unused time at end of plan term; Carry Over process makes entry. | Yes |
| Residual element | Storing unused time that cannot be carried over at end of plan term; Carry Over process makes entry. | Yes |
| Payroll balance element | Feeding the payroll balance that stores gross accruals; payroll run makes entry. | Yes |
| Tagging element | Identifying absences and other element entries that have been entered retrospectively and not yet included in the gross accrual calculation. The payroll run creates a tagging element entry and updates accrual accordingly. | Yes |
| Other elements | Storing other amounts of time to be included in the net accrual calculation (such as time bought and sold); you create any other elements your plan requires. | No |
| Accrual formula | Calculating gross accrual to date | No, but predefined examples |
| Carry Over formula | Returning the maximum permitted time an employee can carry over, and the effective date and expiry date of the carry over; called by the Carry Over process. | No, but predefined examples |
| Ineligibility formula | Checking whether an employee is eligible to use accrued PTO on the effective date of an absence entry made by BEE (Batch Element Entry); called by BEE validation. NOTE: This formula is not required if you enter the plan's ineligibility period in the Accrual Plan window. | No, but predefined examples |
| Payroll formula | Calling the accrual formula during a payroll run and returning the gross accrual to the payroll balance element, which feeds the payroll balance. | Yes |
| Net accrual calculation | Defining which element entries add to or subtract from the gross accrual to create net. | Yes, but you can update |
| Payroll balance | Storing the gross accrual so that batch processes do not have to recalculate the accrual from the beginning of the accrual term each time they are run. | Yes |