Oracle Fast Formulas - Chapter 11: Practical Example - Writing a Payroll Fast Formula

 

Chapter 11: Practical Example - Writing a Payroll Fast Formula

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Objective of This Chapter

In this chapter, you will learn how to create a simple payroll Fast Formula by applying the concepts of variables, conditions, and calculations practically.

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Scenario

We want to create a formula to calculate the monthly bonus based on the following rules:

• If the employee salary is greater than 50000, bonus is 10% of salary.

• If the employee salary is less than or equal to 50000, bonus is 5% of salary.

• If the employee is a new joiner (less than 6 months), bonus is fixed at 2000.

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Step-by-Step Formula

1. Inputs
   We need two inputs:

• SALARY

• MONTHS_WORKED

 
INPUTS ARE SALARY, MONTHS_WORKED

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2. Declare Bonus Variable

 
DEFAULT FOR SALARY IS 0
DEFAULT FOR MONTHS_WORKED IS 0
bonus = 0

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3. Apply Logic for New Joiners

 
IF MONTHS_WORKED < 6 THEN
  bonus = 2000

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4. Apply Logic for Other Employees

 
ELSE
  IF SALARY > 50000 THEN
    bonus = SALARY * 0.10
  ELSE
    bonus = SALARY * 0.05

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5. Return the Bonus

 
RETURN bonus

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Full Formula Example

 
INPUTS ARE SALARY, MONTHS_WORKED

DEFAULT FOR SALARY IS 0
DEFAULT FOR MONTHS_WORKED IS 0
bonus = 0

IF MONTHS_WORKED < 6 THEN
  bonus = 2000
ELSE
  IF SALARY > 50000 THEN
    bonus = SALARY * 0.10
  ELSE
    bonus = SALARY * 0.05

RETURN bonus

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Testing Example

SALARY	MONTHS_WORKED	BONUS
60000	8	6000
45000	8	2250
50000	3	2000

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Best Practices Applied

✅ Clear input definitions
✅ Defaults provided
✅ Conditions clearly structured
✅ Easy to maintain and update
✅ Proper RETURN statement

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Mini Practice Quiz

1. What bonus does a new joiner get?
   Answer: 2000

2. How is the bonus calculated if salary is above 50000?
   Answer: 10% of salary

3. What happens if SALARY is missing in input?
   Answer: Default value 0 is used.