Create A Non Payroll Payment Element- Per Diem

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We can create a payment element that is a non payroll payment that can be paid to an employee, as needed

To create a Non-Payroll Payment Element for Per Diem in Oracle HCM, follow these steps:

1. Navigate to Payroll Elements

  • Go to My Client Groups > Payroll > Elements.
  • Click Create to create a new element.

2. Enter Basic Information

  • Primary Classification: Select Non-Payroll Payments (this will classify it as a non-payroll element).
  • Secondary Classification: Choose a relevant classification if applicable (e.g., Per Diem).
  • Element Name: Enter a name like “Per Diem Payment”.
  • Reporting Name: Enter a reporting name, such as “Per Diem”.

3. Additional Element Information

  • Effective Date: Enter the effective start date for the element.
  • Input Currency: Define the currency (e.g., USD).
  • Open-ended: Select this if the element doesn’t have an end date.

4. Define the Processing Rules

  • Process the element at payroll run: Ensure this is selected to make it available during payroll processing.
  • Recurring or Non-Recurring: Choose Non-Recurring since per diem payments are generally based on specific events or timeframes, not regular occurrences.

5. Specify the Calculation Rules

  • Calculation Rule: Since Per Diem is often a flat amount, set it as Flat Amount.
  • Predefined Values: Define any default amount if applicable, or leave it open for entry.

6. Configure Element Eligibility

  • Go to the Element Eligibility section.
  • Click Create to define eligibility criteria for this payment. You may define criteria based on:
    • Employee Group, Job Role, or Location to ensure only eligible employees receive the payment.

7. Define the Element Entry Values

  • Define input values as needed:
    • Per Diem Amount: For a set per diem rate.
    • Days/Period: If the payment varies based on the number of days worked or traveled, this can be set up as an additional input value.

8. Save and Close

  • Once all details are entered, click Save and Close.

9. Test the Element

  • Run a test payroll calculation for an employee to confirm the Per Diem payment is processed correctly as a non-payroll element.

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