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Retro pay step by step

Scenario: Mr. ABC was hired on 1st of Jan 2009 and is entitled for following allowance and deduction
with salary
1. Salary element: 70000
2. Union fund: 300
3. Special Allowance: 2000
Payroll has been run for the month of Jan and Feb, 2009 with same element entries of course. In
month of March company decided to
upgrade special Allowance from 2000 to 2500 which would be effective from his hire date which is
1st of Jan 2009.
Before running the payroll of March we have to run retro pay by element process to provide him
arrears. For that we would
follow the steps given below.
1. Create new element for retro pay in element description form. We created "Special allowance retro
element" with following
properties.
(Important Note: Before you enter or save the record, change the date from Mar(as we are standing
in March) to 1st Jan to let the
retro element cover entries from Jan.)
a. Element type: Nonrecurring.
b. Multiple entries: Y
c. Process in run: Y
d. Input values: Pay Value, Start Date (Date), End Date(Date).
2. Save the Record
3. Create element link wiht Mr. Abc position (or to whom you are required to give it).
4. Come to element description form and query base element i.e. "Special Allowance".
(Remember the date we have changed is still 01-Jan-2009 so we are standing in the month of Jan.)
5. In Recalculation Tab of element description, open LOV of field Recalculation Event. From list
select event group name which i have
already created while setting up retro notification report. (Please refer oracle payroll user guide).
Or if event group is not created you can select the already provided event group name from the list
called "Entry Changes".
6. In Retropay Element, select the retropay element which we were created just a while ago (Special
allowance retro element).

7 Save the record (Remember we are still standing in the month of Jan. so all the entries will go with
effective date of 1st Jan, 2009)
8. Create Assignment set (Special_retro_assignment_Set), save the record, and in Amendment,
select Mr. Abc.
9. Create Element set (Special Retro element Set), save the record, and press include button to
select element, and besure to select the base element that is
"Special Allowance". Save the record.
10. (Important Note: Assignment and element set can be created irrespective of effective date so if
you like you can change the
effective date from Jan to Mar (lets say) Mar 25th and creat Assignment and Element set.)
11. Return to the month of March.
12. Now Submit process in Request process window,
a. Process Name: Retropay by Element
b. Paramerters:
i. Assignment Set: Special_retro_assignment_Set
ii. Element Set: Special Retro element Set
iii. Start Date: 01-Jan-2009
iv. End Date: 28-Feb-2009
c. Submit the Request.
11. Veiw all concurrent request.
12. After succesfull completion press button view LOG and it will be like this
Ended processing at : 12-FEB-2010 13:00:03
Total Assignment count : 1
Total Action count : 1
Successfully processed : 1
13. Come to element entry form of MR. ABC and it will be like this
a. Special allowance retro element (4 entries of this element in element entries form. Check their
entry values and 6Date earned)
b. Monthly Salary
c. Union Fund
d. Special Allowance
14. Retropay by element process run successfully. and it create additional 4 entries of retro element
"Special allowance retro element".
Check their entry values which will be -2500 for 2 retro element and -2000 for another 2 retro
elements.
Add 2500+2500 = 5000
Add -2000+ (-2000) = -4000
5000-4000 = 1000 (1000 will be the arrears of Jan (500) and Feb (500) will be given in the month of
March with his salary.

15. Hope this case has been easy to understand.


16. Replies/Queries are most welcome.
What is Retro?
Retro means an out-dated thing from the past which is active now.
What is Retro Pay?
Retro Pay stands for some old Payment due for the employee
How can we land in such scenario?
There are two things which can happen..
1. Incorrect Element Entry Value-Some times we realise after some time that the element entry entered
and processed in the past is not correct.
2. Back Dated Salary Increments: The union agreement or the Higher Management decides to revise
salary effective from a date in the past
So what shall we do now?
Now that we have corrected the old Element Entry, the next Step is how to give this amount to the
employee.
What Oracle Gives me for this?
Oracle gives the RetroPay process but in four flavours leading to confusions for the unarmed.
What are those four?
Here is the list
1. RetroPay by Run
2. RetroPay by Aggregate
3. RetroPay by Element
4. Enhanced RetroPay
Out of these four which one we are going to see in this?
In this entry, I am going to cover Retro Pay by Element. A new element entry will be created with the
difference amount.
Sample Scenario
Assume an employee gets paid 1,500 for August.
Now payroll comes to know that his salary is actually 2,000 and not 1,500.
The following are the steps required to be performed.
1. Define a new element which can be used to pay the Retro amount
2. Make sure that this element is Non-recurring and Multiple Entries allowed.
3. Attach this Element to the retro tab of the Salary element
4. Define the Assignment Set
An assignment set needs to be defined with the affected Employees

5. Element Set
An element set needs to be defined with the Salary element(Don't include the Retro Element here.You will
get an Error while submitting the Concurrent Request) .
6. Now run the Retro Pay by Element with the following parameters
a. Effective Start Date: This is the date from which we want to compute the difference
b. Effective End Date: A date in the latest Pay Period. The retro entries get created in this period.
c. Assignment Set: The Assignment Set we created
d. Element Set: The element set we created
Submit the request.. And check from the log that the number of assignments processed is correct.
Now if we check the element entries screen, we can see the retro elements getting created.
We can process them as usual.
What is Retro?
Retro means an out-dated thing from the past which is active now.
What is Retro Pay?
Retro Pay stands for some old Payment due for the employee
How can we land in such scenario?
There are two things which can happen..
1. Incorrect Element Entry Value-Some times we realise after some time that the element entry
entered and processed in the past is not correct.
2. Back Dated Salary Increments: The union agreement or the Higher Management decides to revise
salary effective from a date in the past
So what shall we do now?
Now that we have corrected the old Element Entry, the next Step is how to give this amount to the
employee.
What Oracle Gives me for this?
Oracle gives the RetroPay process but in four flavours leading to confusions for the unarmed.
What are those four?
Here is the list
1. RetroPay by Run
2. RetroPay by Aggregate
3. RetroPay by Element
4. Enhanced RetroPay
Out of these four which one we are going to see in this?

In this entry, I am going to cover Retro Pay by Element. A new element entry will be created with the
difference amount.
Sample Scenario
Assume an employee gets paid 1,500 for August.
Now payroll comes to know that his salary is actually 2,000 and not 1,500.
The following are the steps required to be performed.
1. Define a new element which can be used to pay the Retro amount
2. Make sure that this element is Non-recurring and Multiple Entries allowed.
3. Attach this Element to the retro tab of the Salary element
4. Define the Assignment Set
An assignment set needs to be defined with the affected Employees
5. Element Set
An element set needs to be defined with the Salary element(Don't include the Retro Element here.You
will get an Error while submitting the Concurrent Request) .
6. Now run the Retro Pay by Element with the following parameters
a. Effective Start Date: This is the date from which we want to compute the difference
b. Effective End Date: A date in the latest Pay Period. The retro entries get created in this period.
c. Assignment Set: The Assignment Set we created
d. Element Set: The element set we created
Submit the request.. And check from the log that the number of assignments processed is correct.
Now if we check the element entries screen, we can see the retro elements getting created.
Step 1. You will first run "Retro-Notifications Report (Enhanced) - PDF". This will read the records from
PAY_PROCESS_EVENTS.
This process will insert eligible records into PAY_RETRO_ASSIGNMENTS and PAY_RETRO_ENTRIES .

Step 2. Run process Retropay (Enhanced). This process will do the require calculations to differential
payments.

Why is the Retropay process picking up Entries from pay periods that have either been skipped or
not processed?
It all depends on whether the employee was picked up for processing when Payroll Run originally
processed that pay period.
If the assignment was picked up but nothing found to process so that the assignment is marked as
'Skipped', that assignment will be picked up by RetroPay if changes are subsequently entered into
that pay period.

This is a fundamental part of RetroPay processing and the reason the Skipped actions are created.
If the employee was never processed in the original pay period (no assignment action exists for
them in the Run) then RetroPay cannot process them.
RetroPay reprocesses employees that were included in the original pay period.
RetroPay (Enhanced) replaces RetroPay by Element but retains its original characteristics.

Retropay (Enhanced) is a two-stage process:

First process:
Run the Retro-Notification Report (Enhanced) - PDF concurrent request. The process
creates data that stores details of all assignments and entries that require retropay because
they have had retrospective changes affecting them. This created data is known as RetroAssignments and Retro-Entries. These entries can be viewed in the PDF file produced by the
process and/or through the new RetroPay Status window, which has a self-service user
interface.

Second process:
Run the Retropay (Enhanced) process. This process drives off the new data tables to only reprocess those assignments with changed data and only re-process historical data back to the
required effective date.

The Retropay (Enhanced) process has the following features:


- Users are provided the additional ability to setup Retropay summary elements for seeded
elements. You are not currently able to do this with RetroPay by Element.
- The process reprocesses based on the earliest assignment reprocess date (as opposed to the
user supplied date). Hence the process runs for as far back in time as is necessary for each
individual assignment. This change enhances the performance of the process.

Running the Processes


The Retropay (Enhanced) process uses a different mechanism for identifying the
assignments to be processed. Retropay (by Aggregate) and RetroPay by Element

previously identified assignments by an Assignment Set and recalculated all the


payroll runs between the supplied start and end date.
This approach is inefficient because each assignment should only be recalculated
for the period that they need to be. For example, if Assignment A needs to be
recalculated from 16th March and Assignment B from the 16th April, currently both
were processed from the 16th March.
With RetroPay (Enhanced) an assignment set is no longer used. The concept of
creating a request to retropay an assignment is now introduced. The request takes
the form of identifying the assignment to process and the date from which the
recalculation will take place.

There are three ways to make a request for an assignment to be retrospectively


paid:
1) Retro-Notification Report (Enhanced) PDF. This process generates the requests.
2) Details can be entered manually in the new self-service (framework) form
3) API

Note: Retropay (Enhanced) no longer uses an assignment set. You must use either
Retro-Notification Report (Enhanced), the new RetroPay Status form or the API.
Retro-Notification (Enhanced) PDF Parameters:
Payroll (required)
Overriding Event Group
Template Name (required) there is one template currently called RetroNotifications Report (Enhanced)

As with the previous version (Retro-Notification Report provided several years ago),
the process creates a report that displays all assignments that have had a
Datetracked Event identified in the Retro Event Group you defined. RetroNotification can be run more than once for the same time frame. Assignments are
not dropped off this report until the Retropay (Enhanced) process is run.

This report has been added for the appropriate seeded payroll request groups. If
you have a custom request group, you must add this new request.
Retropay Status Window
This form appears on the navigator, but you must be logged into the E-Business
Suite Home page to access it. This form has been added for all seeded

responsibilities. If you have custom menus or responsibilities, you must add this
form.

The assignments identified by the Retro-Notification Report (Enhanced) PDF


process will be displayed. You can further enter, update and delete retropay
assignment requests. The form also shows a status indicating whether the request
has been processed. The retropay assignment requests will be processed when the
next Retropay (Enhanced) process is run.

If you manually enter an assignment, you must also include the Retro
entries/component for that assignment in this window.

Retropay entry details are linked to retropay assignment requests. This indicates
which components should be processed by the Retropay (Enhanced) for a particular
element entry.

Retropay (Enhanced)
The RetroPay by Element process used an Element Set to indicate which element
changes should be brought forward. An Element Set is no longer required. The setup
of the Retro Components now identifies the elements to be used by the retropay
process.

Parameters:
Effective Date (required)
Payroll (required)

Retropay (Enhanced) is a sequenced action. This means the Effective Date must
be later than your last event. For example: your current payroll period is
April 16 to 29. Your previous payroll's check date was April 22. The
Effective Date would be any date between April 23 and the end date of the
current payroll run, which is April 29.

Retropay (Enhanced) produces multiple retroactive element entries for each


element entry, which changed for each payroll period. Elements with exact names
will be combined on the statement of earnings (SOE), check, deposit advice and
online payslip.

The detail of the period the retro element was generated as a result of is displayed
on the Entries window in the current payroll period. The element entry's Original
Date Earned is populated with the pay period that the difference is from. There is a
'Retrospective' check box also. This check box will be checked for any entry created
by the Retropay (Enhanced) process.

This process has been added for the appropriate seeded payroll request groups. If
you have a custom request group, you must add this new request.
Employee Process In Retro Pay Enhanced Report but not in Retro Pay Process

The reason being Retropay(Enhanced) will NOT pick entries if there are future dated payroll
action which are either in status 'Complete' or 'Skipped'.
Example : customer had Balance Adjustment and hence the entries were not picked up.
BUG:13965053 - RETRO ENAHANCED PROCESS DID NOT PICKUP AN EMPLOYEE HAVING
BALANCE ADJUSTMENTS
It all depends on whether the employee was picked up for processing when Payroll Run
originally
processed that pay period.
If the assignment was picked up but nothing found to process so that the assignment is
marked as
'Skipped', that assignment will be picked up by RetroPay if changes are subsequently
entered into
that pay period.
This is a fundamental part of RetroPay processing and the reason the Skipped actions are
created.
If the employee was never processed in the original pay period (no assignment action exists
for
them in the Run) then RetroPay cannot process them.
RetroPay reprocesses employees that were included in the original pay period
Back End Tables to check

PAY_RETRO_ASSIGNMENTS
Identifies assignment for reprocessing

PAY_RETRO_COMPONENTS
PAY_RETRO_COMPONENT_USAGES
PAY_RETRO_DEFINITIONS
PAY_RETRO_DEFN_COMPONENTS
PAY_RETRO_ENTRIES
Identifies the Entries required for re-processing.
PAY_RETRO_NOTIF_REPORTS
Populated and used in the RetroNotification Report
"Retro-Notifications Report (Enhanced) - PDF". This will read the records from
PAY_PROCESS_EVENTS.
This process will insert eligible records into PAY_RETRO_ASSIGNMENTS
and PAY_RETRO_ENTRIES .
Which process do we run to initiate RetroPay processing for our backdated changes?That there can be various "Event
Groups" defined(some for proration and some for Retro[event group type being retro].
All the changes pertaining to all Event Groups would have created entries in PAY_PROCESS_EVENTS.
Retro Notification report will filter the events applicable to RetroPay and will populate PAY_RETRO_ASSIGNMENTS

and PAY_RETRO_ENTRIES .
What are the processes that one needs to run?
Step a. You will first run "Retro-Notifications Report (Enhanced) - PDF". This will read the records from
PAY_PROCESS_EVENTS.
This process will insert eligible records into PAY_RETRO_ASSIGNMENTS and PAY_RETRO_ENTRIES .

Step b. Run process Retropay (Enhanced). This process will do the require calculations to differential
payments.

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