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Recalculate Rate Component and Salary Details Using Run Rates-based Salary Process

Learn how to efficiently recalculate rate components and update salary details using the Run Rates-based Salary Process in Oracle HCM Cloud. Streamline payroll accuracy and automate salary adjustments seamlessly.

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Recalculate Rate Component and Salary Details Using Run Rates-based Salary Process - Oracle HCM Cloud
February 21, 2025

Recalculate Rate Component and Salary Details Using Run Rates-based Salary Process

Managing employee salaries efficiently is essential for any organization. Oracle Fusion HCM offers the Run Rates-Based Salary Process, a powerful tool that enables HR professionals and payroll teams to recalculate salaries whenever rate components change. This ensures precise salary calculations aligned with predefined rate structures.

In this blog, the step-by-step process of recalculating rate components and salary details using the Run Rates-Based Salary Process in Oracle Fusion HCM will be discussed.

This process ensures that salary adjustments accurately reflect any updates to rate components, such as changes in elements, criteria-based values, or Fast Formulas.

The Run Rates-Based Salary Process in Oracle Fusion HCM is used to:

  • Recalculate salary amounts when rate components are updated.
  • Ensure salaries reflect the latest rate definitions and criteria.

 

When to Use This Process?

  • After updating rate definitions.
  • When salary components are determined by Value by Criteria.
  • If there are changes in salary basis configurations.

 

Accessing the Run Rates-Based Salary Process in Oracle Fusion HCM

To initiate salary recalculations, HR teams must first access the Run Rates-Based Salary Process in Oracle Fusion HCM. This step ensures seamless navigation to the compensation module, where salary adjustments can be managed efficiently.

 

Step 1: Navigate to the Run Rates-Based Salary Process.

  • Log in to Oracle Fusion HCM.
  • Go to Navigator > My Client Groups > Compensation.
  • Click on Run Rates-Based Salary Process.

 

Step 2: Provide Required Process Parameters.

  • Enter the process name, e.g., Gratuity Correction.
  • Select Process Mode: “Correct all salary records by recalculating rate values.”
  • Choose the Effective Date from which recalculations should apply.
  • Select Run Type as “Calculate salary values and wait for review.”
  • Choose the Action and Action Reason based on requirements.
  • Apply Population Filters as needed.

 

Fig 1 Run Batch Process - Recalculate Rate Component and Salary Details Using Run Rates-based Salary Process - Oracle HCM Cloud

Fig 1: Run Batch Process

 

Step 3: Submit the Process.

  • Click Submit to start the recalculation.
  • Navigate to Tools > Scheduled Processes to monitor the job status.
  • Wait for the process to complete successfully.

 

Step 4: Review Proposed Salary Changes and Rate Values.

  • Go to Navigator > My Client Groups > Compensation.
  • Select Review Proposed Salary Changes and Rate Values.
  • Search with Process ID/Process Name.

 

Fig 2 Review Proposed Salary Changes and Rate Values - Recalculate Rate Component and Salary Details Using Run Rates-based Salary Process - Oracle HCM Cloud

Fig 2: Review Proposed Salary Changes and Rate Values

 

Step 5: Review Process Results and Validate Assignments Processed.

  • After executing the Run Rate-Based Salary Process, the next step is to review the process results, identify any errors, and verify the number of assignments processed to ensure accuracy.
  • Check the Processed Assignments Count to confirm how many employee records were updated.
  • Ensure the recalculated values match expectations.

 

Fig 3 Review Postings Results - Recalculate Rate Component and Salary Details Using Run Rates-based Salary Process - Oracle HCM Cloud

Fig 3: Review Postings Results

 

Fig 4 Validate Results - Recalculate Rate Component and Salary Details Using Run Rates-based Salary Process - Oracle HCM Cloud

Fig 4: Validate Results

 

Pre-Requisites:

Before executing the Run Rates-Based Salary Process, ensure that:

  • Rate Definitions are properly set up.
  • Salary Basis is configured with “Salary Amount Determined by Rates.”
  • All rate values are updated as per business requirements.
  • Employees have valid salary records linked to rate-based salary calculations.
  • Value by Criteria rules is correctly set up (if applicable).

 

Troubleshooting Common Issues:

If the process fails or salary updates are incorrect, consider these solutions:

Troubleshooting Common Issues:

 

Tips And Considerations:

  • The process excludes offers and pending worker assignments.
  • To roll back the posted salaries, you need to run the rates-based salary process with “the run type that includes waiting for review.” Roll back isn’t available when the run type commits proposed changes.

 

Business Benefits of the Run Rate-Based Salary Process:

  • Ensures Salary Accuracy – Automatically recalculates salaries based on the latest rate updates, reducing errors and discrepancies.
  • Enhances Efficiency – Eliminates manual salary adjustments, saving time.
  • Improves Compliance – Ensures salary changes align with company policies and regulatory requirements.
  • Scalable for Large Workforces – Efficiently handles bulk salary recalculations, making it ideal for organizations with a large number of employees.

 

Conclusion

The Run Rate-Based Salary Process in Oracle Fusion HCM plays a crucial role in ensuring salary accuracy when rate components are updated. By following this step-by-step approach, HR and payroll teams can effectively manage salary recalculations, ensuring that employees receive the correct pay based on the latest rates. This functionality enhances efficiency by automating salary adjustments and reducing the need for manual corrections.

 

Author: Jebarsan T, Oracle Techno-Functional Consultant

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