Recovering Festive Advance Payments in Global Payroll

Global Payroll enables you to make the actual festive advance payments through the Global Payroll system. However, as festive advance payments are advances, they must then be recovered through deductions in the payroll system in subsequent pay periods. Separate customary deductions corresponding to each of the festive advance types and supporting elements enable you to deduct festive advance amounts in subsequent pays. This enables you to recover the entire outstanding festive advance payments when an employee terminates.

You specify the deduction elements to be used for the recovery of the festive advances on the Festive Advance Pay Program page in HR. To ensure you select appropriate deductions on this page, the system enables you to select only deductions with a category of FA (Festive Advance). All the elements created use this category. Separate deductions are provided for recovering advances for each of the festive advance types and they are all set up identically.

The following festive advance deductions enable you to recover festive advance payments (subtracts from the FAD AC ADV AMT accumulator):

  • CNY PBK — Chinese New Year Advance Recovery.

  • DEEPAVALI PB — Deepavali Advance Recovery.

  • XMAS PBK — Christmas Advance Recovery.

  • HARI RAYA PB — Hari Raya Advance Recovery.

Note: Deductions are delivered to recover 100% of the advance in the following period. To spread it out you should change the percentage on the deduction.

The following supporting elements control the processing of festive advance recoveries (payback):

  1. When an advance is paid, it is added to two accumulators:

    • FAD AC ADV AMT (Advance Amount Accumulator): Holds the amount paid and is cleared out when each advance is paid so that it only contains the value of the last paid advance.

    • FAD AC FA BAL (Outstanding Balance Accumulator): Used to hold the outstanding balance and is also reduced by the payback deductions.

  2. The amount for the payback deductions is based on the first accumulator (the amount of the last paid advance). Although, in the delivered rules, it is 100% of that amount, you can change this to spread the repayments as required.

    Note: Accumulators are updated at the end of the process, so the pay back deduction is calculated based on the accumulators from the previous pay, not including any newly paid advance.

  3. A post processing formula, FAD FM ADV LIMIT is used with all of the deductions to limit the deduction amount to the outstanding balance (the second accumulator, FAD AC FA BAL). If an employee's termination date falls within the current period, the post processing formula overrides the deduction amount with the entire outstanding balance so that the advance is always fully repaid on termination.

  4. Formula FAD FM ADV PBCK checks first whether there is any outstanding advance to be repaid (in accumulator FAD AC FA BAL) and if there is, whether the current deduction is the one specified on the employees FA Program for paying it back. The outstanding balance is also checked in the FAD GC ADV PBCK generation control to save calculating when there is no advance to repay. An error message is generated if the gross pay is less than the amount to be deducted.

  5. Array FAD AR PBCK DEDN loads the deduction code that is assigned to the employees FA Program / Holiday Type into variable FAD VR PBCK DEDN.

See PeopleSoft Human Resources Administer Workforce, PeopleSoft Human Resources Administer Festive Advance, and PeopleSoft Global Payroll product documentation for more information.