Oracle Fast Formulas - Chapter 41: Fast Formula for Absence Proration Calculation

 

Chapter 41: Fast Formula for Absence Proration Calculation

Overview:

Absence proration is used in Oracle Fusion HCM to allocate leave or accruals proportionally based on employee service periods, changes in working hours, or mid-period entries. Fast Formulas for proration enable you to customize this behavior beyond system defaults.

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Use Cases:

• Employee joins or exits mid-period

• Changes in eligibility or work schedule

• Mid-year policy changes affecting entitlement

• Part-time to full-time transitions

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Sample Formula for Basic Monthly Proration:

 
DEFAULT FOR ELIGIBLE_DAYS IS 0
DEFAULT FOR TOTAL_MONTH_DAYS IS 30
DEFAULT FOR MONTHLY_ENTITLEMENT IS 0

INPUTS ARE ELIGIBLE_DAYS, TOTAL_MONTH_DAYS, MONTHLY_ENTITLEMENT

PRORATED_ENTITLEMENT = (ELIGIBLE_DAYS / TOTAL_MONTH_DAYS) * MONTHLY_ENTITLEMENT

RETURN PRORATED_ENTITLEMENT

This formula prorates leave entitlement based on the number of eligible days in the month.

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Extended Formula With Join Date Logic:

 
DEFAULT FOR START_DATE IS '1900/01/01'
DEFAULT FOR END_DATE IS '1900/01/01'
DEFAULT FOR JOIN_DATE IS '1900/01/01'
DEFAULT FOR MONTHLY_ENTITLEMENT IS 0

INPUTS ARE START_DATE, END_DATE, JOIN_DATE, MONTHLY_ENTITLEMENT

ELIGIBLE_DAYS = 0

IF JOIN_DATE > START_DATE THEN
  ELIGIBLE_DAYS = (END_DATE - JOIN_DATE) + 1
ELSE
  ELIGIBLE_DAYS = (END_DATE - START_DATE) + 1
ENDIF

TOTAL_DAYS = (END_DATE - START_DATE) + 1

PRORATED = (ELIGIBLE_DAYS / TOTAL_DAYS) * MONTHLY_ENTITLEMENT

RETURN PRORATED

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When to Use:

• In Absence Plan setup > Proration Formula field

• When configuring eligibility criteria

• With rate-based leave plans or partial month employment

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Practice Quiz:

1. Why is proration needed in an absence plan?

2. What inputs are required to calculate prorated leave?

3. How does proration affect full-time vs part-time employees?