Net Pay Validation by Priority in Global Payroll Peoplesoft HRMS

The net pay validation (NPV) prevents a deduction from reducing net pay to zero or minimum amount that you define. if you don't use NPV, system grabs whole amount of deduction, which might leads to negative net pay. To implement this you have two options

1. Processing Sequence

2. Priority Order

Processing Sequence - it refers to sequence number in which Deduction is encountered in Section during processing as defined in section setup. It immediately determines whether the net pay is below zero or minimum amount.

Priority Order - it refers to the Priority number assigned to deduction on Arrears page of Deduction element. First all deduction is calculated in first loops and on subsequent loops, NPV formula (assigned on countries page) is  applied to check whether Net pay falls  below zero or minimum amount. In Order to implement this we need to have all the deduction in one section and that section should be of type Sub-Process. We will go in details how to setup the NPV by Priority.

Steps

1. Create an element that will determine the minimum amount below which net pay cannot fall. by default system takes zero as minimum amount.

Let's say VR_NPV_MIN_AMT

2.Create a NPV Formula FM_NPV (which will be something like below).

1 >> FM[FM_NPV]
IF AC[AC_NET] > 0 AND SY[NPV COMPLETED] = 0 THEN
    EXIT
ENDIF
IF SY[NPV COMPLETED] = 1 THEN
     2 >> FM[FM_NPV]
    EXIT
ENDIF
IF SY[CURR PRIORITY NBR] <> SY[LOW PRIORITY NBR] THEN
    EXIT
ENDIF
3 >> FM[FM_NPV]

3. Create the looping formula, which needs to be assigned to deduction in sub-process Section. This looping formula will execute the deduction to n number of times in loops each times NPV will be applied to all deduction and resolve the deduction reaches to minimum amount.

IF SY[SUB PROCESS PASS] = 1 OR ( AC[AC_NET] < 0 AND SY[GP CORR TYPE] <> 'V' ) THEN
    1 >> FM[FM NPV LOOP]
ELSE
    0 >> FM[FM NPV LOOP]
ENDIF

4. Assign NPV formula (FM_NPV) to country which you are using

Navigation :- 
Setup HRMS >> Product Related >> Global Payroll & Absence Mgmt >> System Settings >> Countries >> Country (USA) >> Net Pay Validation Formula

5. Assign minimum Net Pay Entry Type in Process List

Navigation :- 
Setup HRMS >> Product Related >> Global Payroll & Absence Mgmt >> Framework >> Processing >> Processing >> Process List >> Definition Tab ( Minimum Net Entry Type as Variable and Minimum Net Element as VR[VR_NPV_MIN_AMT]

6. Create a Section of section use as Payroll and  section type as sub-process. A new field will appear called Net Pay Validation by Priority, activate it. Add all the deduction directly or assign section in which deduction is present.

Navigation :- 
Setup HRMS >> Product Related >> Global Payroll & Absence Mgmt >> Framework >> Processing >> Processing >> Section >> Net Pay Validation by Priority (Section Type must be Sub-Process)

Also set Maximum Iteration to some higher number instead of 1 to say 50 and assign looping formula (FM[FM_NPV_LOOP]) to Formula and action as Begin for Fist row and action as End to last row (keep formula field blank for all row other than first one).

7. Activate Perform Net Pay Validation checkbox in arrear page of deduction element and assign the Priority number to element as applicable. by default 999 is assigned. Please note the higher the priority number, lower is its priority. check Deduction Arrears Allowed to collect the left amount in subsequent Pay Check.

Navigation :- 
Setup HRMS >> Product Related >> Global Payroll & Absence Mgmt >> Element >> Payroll Elements >> Deductions >> Arrears (4th tab) >> check Perform Net Pay Validation and assign Priority number.