Oracle Fast Formulas - Chapter 5: Different Types of Fast Formulas and Their Use Cases

Objective of This Chapter

In this chapter, you will learn about the different types of Fast Formulas available in Oracle Fusion.
Each formula type serves a different purpose based on the business process where it is used.

Common Fast Formula Types

1. Payroll Formulas

Purpose:
Used to calculate earnings, deductions, taxes, and other payroll elements.

Example:
Calculate HRA (House Rent Allowance) based on employee salary and city.

2. Absence Management Formulas

Purpose:
Used to manage leaves like calculating leave balances, eligibility, and validations.

Example:
Accrue 1.5 days of leave per month for employees.

3. Benefits and Compensation Formulas

Purpose:
Used to check employee eligibility for benefits or to assign specific benefit plans.

Example:
Employee must complete one year to be eligible for health insurance.

4. Time and Labor Formulas

Purpose:
Used in time card validations and calculations.

Example:
Validate if total hours entered are less than or equal to 40 per week.

5. Performance Management Formulas

Purpose:
Used to define custom calculations for performance ratings and goals.

Example:
Auto calculate performance bonus based on manager rating.

6. Payroll Costing Formulas

Purpose:
Used to determine accounting distributions of payroll costs.

Example:
Split salary costs between different departments based on percentage.

7. Extract Rule Formulas

Purpose:
Used in data extraction processes to fetch, filter, or modify data before sending it out from Oracle Fusion to other systems.

Example:
Extract only active employees with payroll information for the last month.

Importance of Choosing Correct Formula Type

Oracle Fusion processes formulas differently based on their type.
Wrong formula type may result in errors during processing.
Formula type ensures correct inputs are available automatically.

Real World Use Cases

Formula Type	Use Case
Payroll	Bonus calculation based on targets
Absence Management	Leave eligibility check
Benefits and Compensation	Benefit plan enrollment based on salary
Time and Labor	Overtime hours validation
Performance Management	Bonus based on performance score
Payroll Costing	Split salary into multiple accounts

Mini Practice Quiz

Which formula type is used to validate leave balance
A Payroll
B Absence Management
C Costing

Answer: B Absence Management

What happens if the wrong formula type is selected
A Formula will still work
B Formula might not work correctly
C System will auto correct it

Answer: B Formula might not work correctly

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