Oracle Fast Formulas - Chapter 39: Fast Formula for Overtime Calculation

 

Chapter 39: Fast Formula for Overtime Calculation

Overview:

Overtime pay is a critical component of payroll in many organizations. Oracle Fusion allows for the automation of overtime calculations using Fast Formulas. These formulas define how and when overtime is triggered and calculated based on rules such as hours worked beyond standard time or on holidays.

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Common Scenarios:

• Standard overtime after 40 hours/week.

• Weekend or holiday overtime.

• Tiered rates (e.g., 1.5x, 2x).

• Shift-based OT eligibility.

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Sample Overtime Calculation Formula

 
DEFAULT FOR HOURS_WORKED IS 0
DEFAULT FOR STANDARD_HOURS IS 40
DEFAULT FOR HOURLY_RATE IS 0

INPUTS ARE HOURS_WORKED, STANDARD_HOURS, HOURLY_RATE

IF HOURS_WORKED > STANDARD_HOURS THEN
  OVERTIME_HOURS = HOURS_WORKED - STANDARD_HOURS
  OVERTIME_AMOUNT = OVERTIME_HOURS * HOURLY_RATE * 1.5
ELSE
  OVERTIME_AMOUNT = 0

RETURN OVERTIME_AMOUNT

This logic returns overtime pay at 1.5 times the regular rate for hours exceeding 40.

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Integration Areas:

• Use with Element Entries linked to payroll.

• Type: Payroll Calculation Formula.

• Context values: PER_ASSIGNMENT_ID, PAY_PERIOD_END_DATE.

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Tips:

• Consider rounding overtime to nearest 0.5 or 1 hour.

• Handle public holidays using calendars or lookup values.

• Use conditions for shift-specific overtime.

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Practice Quiz:

1. How is overtime calculated if 48 hours are worked with a 40-hour standard week?

2. How would you add a 2x rate for holiday overtime?