## Setting Up Advanced DBAs

This chapter provides an overview of advanced deductions, benefits, and accruals (DBA) setup and discusses how to:

- Set up advanced deductions.

- Set up a deduction DBA to adjust negative pay.

- Set up a deduction DBA for overpayment.

- Set up a DBA to calculate if no gross pay.

### Understanding Advanced DBA Setup

You can set up many different types of DBAs. These tasks are examples of some advanced DBAs that you might set up for the company. These tasks do not include every possible scenario, but represent some typical situations in which you need a DBA to perform a specialized function.

Some organizations grant employees loans, or cash advances, from their future earnings. For example, on the 10th of the month, an employee might request a 100.00 advance. If you grant the employee the advance, you need to deduct 100.00 from the payment that the employee receives on the 15th of the month. You can set up an advance deduction to deduct the cash advance from the employee's payment.

You can set up several types of DBAs to manage situations in which an employee's net pay is less than zero. The JD Edwards EnterpriseOne Payroll system does not print payments for amounts that are less than zero. For example, some employees, such as commissioned sales people, might have a pay period in which they have no gross earnings, or they do not have enough gross earnings to pay for all of their deductions. To track employees' pay and deductions in these instances, you can set up a deduction that adjusts negative net pay, or you can set up an overpayment deduction that allows you to take the missed deductions in future pay periods, when the employee has enough earnings to pay for them. You can also set up a DBA to calculate even in pay periods when an employee has no gross earnings.

### Setting Up Advance Deductions

You set up an advance deduction for an employee to pay back a dollar amount advanced by the employer against an employee's earnings. An advance deduction DBA allows you to set up a declining balance that is active until the amount due equals zero.

This section discusses how to set up advance deductions.

#### Forms Used to Set Up Advance Deductions

Form Name | FormID | Navigation | Usage
Basic DBA Information | W059116E | Pay/Deductions/Benefits Setup (G05BD4), PDBA Setup Click Add on the Work With PDBAs form. | Set up basic DBA information.
Advanced DBA Information | W059117A | Select Advanced DBA Info from the Form menu on the Basic DBA Information form. | Set up advance deductions.

#### Setting Up Advance Deductions

Access the Advanced DBA Information form.

Amount Due | Enter the balance or amount that the employee must pay back to the employer.
Declining Balance | Enter an option that indicates whether you want the system to use the amount due at the DBA, group, or employee level to determine whether to use the specified deduction in a payroll cycle. When you select this option, the system continues deducting the amount in the Amount Due field until the amount is zero. When you select this option, you must also enter a value in the Amount Due field; otherwise, the system considers the deduction to be cleared or inactive. If you do not select this option, the amount due is not used with the specified deduction. For advance deductions, you must select this option.
No. of Deductions (number of deductions) | Enter the number of periods for which a deduction or benefit should be taken. The system automatically decreases this number by one for each period taken. You must enter a value in this field if you automate the Number of Periods field.
Number of Periods | Enter an option that indicates whether the system uses the Number of Periods field to determine whether to include the DBA in the payroll cycle. If you select this option, then also enter the number of periods in the No. of Deductions field. If you do not enter a value in the No. of Deductions field, the system considers the DBA inactive. Use this option only when you set up a DBA that is not a wage attachment deduction. When you set up a wage attachment DBA, leave this option cleared and use the Employee Wage Attachment Entry form to enter the number of periods for which the deduction is taken. To continue the DBA only until the amount due is zero, select the Number of Periods option. If you do not select the Number of Periods option, the system ignores this function.
Calculate for all Emp (calculate for all employees) | Enter a code that specifies whether the DBA is required. Values are: Y: Required. N: Not required. For advance deductions, this field should be set to N (No). When you enter Y (Yes), the system automatically processes the DBA for all qualifying employees. When this field is set to Y, you reduce the information that you must maintain for DBAs that you set up for plans or employees. Information is reduced because you do not need to define the DBA at any level other than the DBA setup level. To define qualifying employees, complete these fields on the Advanced DBA Information form: Employee Pay Class - (SALY) Tax Area - (TARA) Home Company - (HMCO) When you leave any of these fields blank, the system includes all employees. Note. The system also uses Tax Area (TARA) and Home Company (HMCO) fields as screening criteria for DBAs that are not required. If either of these two fields contains a value and the Calculate for All Employees option is selected, the system uses the tax areas and home companies to qualify employees for the DBA.

### Setting Up a Deduction DBA to Adjust Negative Pay

This section provides an overview of deduction DBA setup to adjust negative pay and discusses how to set up a deduction DBA to adjust negative pay.

#### Understanding Deduction DBA Setup to Adjust Negative Pay

If an employee's gross pay does not cover the amounts to be deducted, the system adjusts deduction amounts to increase the net pay to zero. The system does not enable negative net pay situations. You can set up deductions to control this adjustment process. Depending on the deduction's arrearage rule, one of these actions occurs:

- The system adjusts the deduction either partially or for the full amount.

- The system puts the adjusted amount in arrears and makes the adjustment the next time that the employee is paid.

- The system puts the adjusted amount in arrears and makes the adjustment each time the employee is paid within the same pay period but does not carry any remaining balance forward into the next pay period.

The system adjusts negative pay in different ways, depending on the arrearage method that you use.

This table describes negative pay adjustment options:

Method | Description
P, blank, F | When all or part of the deduction cannot be taken and you have set up the DBA with one of these arrearage methods, the system: Reduces the deduction. Attempts to collect the amount each time the employee is paid during the current pay period. Attempts to collect the amounts in a future pay period. That is, the DBA is placed in arrears. Amounts not taken appear on the Deductions Not Taken report, which the system generates during pre-payroll processing.
Q, R, G, H | When all or some part of the deduction cannot be taken and you have set up the DBA with one of these arrearage methods, the system: Reduces the deduction. Attempts to collect the amount each time the employee is paid during the current pay period. Attempts to collect the amounts in a future pay period. That is, the DBA is placed in arrears. Amounts not taken appear on the Deduction Arrearage report, which the system generates during pre-payroll processing.
S, T, I, J | When all or some part of the deduction cannot be taken and you have set up the DBA with one of these arrearage methods, the system: Reduces the deduction. Attempts to collect the amount each time the employee is paid during the current pay period. Does not hold the amounts over to collect them in a future pay period. That is, the DBA is placed in arrears for the current pay period only. Amounts not taken appear on the Deduction Arrearage report, which the system generates during pre-payroll processing.

Note. The system does not create journal entries for adjusted amounts and arrearages until the deduction is actually withheld. The system posts only the actual amounts deducted as journal entries.

Example: Payroll Calculations to Adjust Negative Pay

The When to Adjust Deductions field and the Order to Adjust Deductions field enable you to determine the sequence that the system uses to deduct the DBAs.

These tables illustrate one approach for deducting DBAs:

Gross Deductions | DBA Code
Union | #3000
Health | #1000
Savings | #2000
401(k) | #7000
Advance | #9000
Taxes | Blank
Negative Net Pay | Blank

Gross Deductions | DBA Code
Union | #3000
Health | #1000
Savings | #2000
401(k) | #7000
Advance | #9000
Taxes | Blank
Negative Net Pay | Blank

Gross Deductions | DBA Code
Union | #3000
Health | #1000
Savings | #2000
401(k) | #7000
Advance | #9000
Taxes | Blank
Negative Net Pay | Blank

Gross Deductions | DBA Code
Union | #3000
Health | #1000
Savings | #2000
RRSP | #7700
Advance | #9000
Taxes | Blank
Negative Net Pay | Blank

These tables illustrate the order in which the system adjusts the DBAs if the When to Adjust Deductions field is 0 (default) and the Order to Adjust Deductions field is blank:

Gross Deductions | DBA Code | DBA Type
1st | #9000 | Advance
2nd | #7000 | 401(k)
3rd | #3000 | Union
4th | #2000 | Savings
5th | #1000 | Health
Last | Taxes | Blank

Gross Deductions | DBA Code | DBA Type
1st | #9000 | Advance
2nd | #7700 | RRSP
3rd | #3000 | Union
4th | #2000 | Savings
5th | #1000 | Health
Last | Taxes | Blank

When net pay goes below zero or minimum pay, the system adjusts deductions in a high to low order, from DBA code 9999 to DBA code 1000. For example, DBA #8611 would be adjusted before #5322. You can override the order by using the When to Adjust Deductions and Order to Adjust Deductions fields.

These two fields enable you to control how the deductions are adjusted. You can group deductions into three groups so that one group is adjusted before the other two. You can also assign priority numbers within each group.

In this example, you want the Savings and 401(k) or RRSP adjusted (not deducted) before the Advance, Union dues, and Health. Therefore, assign Savings and 401(k) or RRSP a value of 0 in the When to Adjust Deductions field. Assign Advance, Union dues, and Health a value of 1.

This table illustrates the sequence of adjustments that the system will use to bring the payment balance to zero:

Gross Deductions | DBA Code | When to Adjust Deductions
Union | #3000 | 1
Health | #1000 | 1
Savings | #2000 | 0
401 (k) | #7000 | 0
Advance | #9000 | 1
Taxes | Blank | Blank
Negative Net Pay | Blank | Blank
1st | #7000 (0) | 401(k)
2nd | #2000 (0) | Savings
3rd | #9000 (1) | Advance
4th | #3000 (1) | Union
5th | #1000 (1) | Health
6th | Blank | Taxes

Gross Deduction | DBA Code | When to Adjust Deductions
Union | #3000 | 1
Health | #1000 | 1
Savings | #2000 | 0
RRSP | #7000 | 0
Advance | #9000 | 1
Taxes | Blank | Blank
Negative Net Pay | Blank | Blank
1st | #7000 (0) | RRSP
2nd | #2000 (0) | Savings
3rd | #9000 (1) | Advance
4th | #3000 (1) | Union
5th | #1000 (1) | Health
6th | Blank | Taxes

Company policy might be to deduct the advance from the employee's pay before taxes are deducted. The government will make up any tax inequity with this employee at year-end, but the company might not be able to retrieve the advance amount if the company no longer employs the individual.

This table illustrates the sequence of adjustments when you enter 2 in the When to Adjust Deductions field for the Advance:

Gross Deduction | DBA Code | DBA Type
1st | #7000 (0) | 401(k)
2nd | #2000 (0) | Savings
3rd | #3000 (1) | Union
4th | #1000 (1) | Health
5th | Blank | Taxes
6th | #9000 (2) | Advance
Blank | Blank | Blank
1st | #7700 (0) | RRSP
2nd | #2000 (0) | Savings
3rd | #3000 (1) | Union
4th | #1000 (1) | Health
5th | Blank | Taxes
6th | #9000 (2) | Advance

This example illustrates how the codes in the When To Adjust and Order to Adjust fields would work for one employee. When you set up the DBAs, you must consider how these codes affect all employees using these deductions.

#### Forms Used to Set Up a Deduction DBA to Adjust Negative Pay

Form Name | FormID | Navigation | Usage
Basic DBA Information | W059116E | Pay/Deductions/Benefits Setup (G05BD4), PDBA Setup Select the Deduction option, and then click Add on the Work With PDBAs form. | Set up basic DBA information.
General Accounting/Arrearage Information | W059116D | Select GA/Arrearage Info from the Form menu on the Basic DBA Information form. | Set up arrearage information.
Basis of Calculation | W059118B | Select Basis of Calc. from the Form menu on the Basic DBA Information form. | Set up basis of calculation information.

#### Setting Up a Deduction DBA to Adjust Negative Pay

Access the General Accounting/Arrearage Information form.

Arrearage Method | Enter a code indicating how to adjust deductions when the employee is in a negative pay situation. Values are: P: Do a partial or full deduction as needed. This is the default. F: Do a full reduction or none at all. N: Do not reduce. Q: Same as code P. In addition, place the amount in arrears, but do not apply the limits when collecting the arrearage. Write the arrearage balance to history. R: Same as code P. In addition, place the amount in arrears and apply the limits when collecting the arrearage. Write the arrearage balance to history. G: Same as code F. In addition, place the amount in arrears, but do not apply the limits when collecting the arrearage. Write the arrearage balance to history. H: Same as code F. In addition, place the amount in arrears and apply the limits when collecting the arrearage. Write the arrearage balance to history. S: Same as code P. In addition, place the amount in arrears for the current pay period only but do not apply the limits when collecting the arrearage. Do not write the arrearage balance to history. T: Same as code P. In addition, place the amount in arrears for the current pay period only and apply the limits when collecting the arrearage. Do not write arrearage balance to history. I: Same as code F. In addition, place the amount in arrears for the current pay period only, but do not apply the limits when collecting the arrearage. Do not write arrearage balance to history. J: Same as code F. In addition, place the amount in arrears for the current pay period only and apply the limits when collecting the arrearage. Do not write arrearage balance to history.
When To Adjust Ded (when to adjust deduction) | Enter a code that specifies when the system adjusts, or backs an amount out of, deductions. Values are: 0: Adjust deductions marked with 0 before payroll taxes. 1: Adjust deductions marked with 0, and then adjust those marked with 1 before payroll taxes. 2: Adjust payroll taxes before the deductions marked with 2. (This value is for future use.)
Order To Adjust Ded (order to adjust deduction) | Enter a value that specifies the order in which deductions are taken when an employee's gross pay does not cover deductions. Values are 0001 through 9999. The system starts with the highest code. For example, 9999 is deducted before 0001.

### Setting Up a Deduction DBA for Overpayment

This section provides an overview of deduction DBA setup for overpayment, lists prerequisites, and discusses how to set up a deduction DBA for overpayment.

#### Understanding Deduction DBA Setup for Overpayment

The system cannot write a payment for a negative amount. Therefore, when an employee's net pay drops below zero and stays below zero, even after all adjustments have been made, the system creates an overpayment. The overpayment amount is the amount needed to bring net pay back to zero. The system treats this amount like an advance to the employee and subtracts the amount from the employee's future pay until the overpayment is repaid.

The system uses a DBA to collect the overpayment. Whenever the system creates an overpayment for an employee, it assigns the DBA to the employee's DBA instructions and displays the amount on the payroll register. We ship the JD Edwards EnterpriseOne Payroll system with DBA 9997 as the DBA for overpayments. You can set up a different DBA number for overpayments if you want to use 9997 for other purposes.

#### Prerequisites

Before you complete the tasks in this section:

- Verify that the overpayment processing option on the payroll workbench is set to DBA 9997.

- Assign an account number for DBA 9997 (or the DBA that you want to use for overpayments) in the credit liabilities table in the automatic accounting instructions to avoid accounting errors. If you use a DBA code other than 9997, you need to set the overpayment processing option on the payroll workbench to the DBA code that you are using.

#### Form Used to Set Up a Deduction DBA for Overpayment

Form Name | FormID | Navigation | Usage
Basic DBA Information | W059116E | Pay/Deductions/Benefits Setup (G05BD4), PDBA Setup Select the Deduction option and then click Add on the Work With PDBAs form. | Set up a deduction DBA for overpayment.

#### Setting Up a Deduction DBA for Overpayment

Access the Basic DBA Information form.

DBA Type | Enter a code that specifies the type of payroll entry. Values are: P: Time Cards (earnings) D: Deductions withheld B: Benefit (both cash and noncash) A: Time accrual, such as sick and vacation time
Paystub Text | Enter the text that you want the system to print on the employee's paystub. If you are using the Time and Labor system, the system does not create payments. However, this field is required to complete the form. Generally, you enter a description of the pay, deductions, benefits, and accruals (PDBA).

### Setting Up a DBA to Calculate If No Gross Pay

This section provides an overview of DBA setup to calculate if no gross pay and discusses how to set up a DBA to calculate if no gross pay.

#### Understanding DBA Setup to Calculate If No Gross Pay

You can set up the system to calculate a DBA to calculate even if no gross pay exists. For example, you can set up a DBA to calculate a benefit when an employee is on a leave of absence.

You might also set up the system to calculate a deduction and place the amount in arrears to be withheld the next payroll cycle. The deduction is included on the Deduction Arrearage report during pre-payroll processing.

#### Forms Used to Set Up a DBA to Calculate If No Gross Pay

Form Name | FormID | Navigation | Usage
Basic DBA Information | W059116E | Pay/Deductions/Benefits Setup (G05BD4), choose PDBA Setup Select the Deduction or Benefit option and then click Add on the Work With PDBAs form. | Set up a DBA to calculate if no gross pay.
General Accounting/Arrearage Information | W059116D | Select GA/Arrearage Info. from the Form menu on the Basic DBA Information form. | Specify the arrearage method.

#### Setting Up a DBA to Calculate If No Gross Pay

Access the Basic DBA Information form.

Method of Calculation | Enter a user-defined code from 07/DM that specifies the method that the system uses to perform certain calculations. For example, the system uses a method of calculation to calculate DBAs and workers' compensation insurance. The method values are hard-coded. If you use methods 0 through 6, 8, 9, or G, you must also enter a value in the Table Code field.
Arrearage Method | Enter a code indicating how to adjust deductions when the employee is in a negative pay situation. Values are: P: Do a partial or full deduction as needed. This is the default. F: Do a full reduction or none at all. N: Do not reduce. Q: Same as code P. In addition, place the amount in arrears, but do not apply the limits when collecting the arrearage. Write the arrearage balance to history. R: Same as code P. In addition, place the amount in arrears and apply the limits when collecting the arrearage. Write the arrearage balance to history. G: Same as code F. In addition, place the amount in arrears, but do not apply the limits when collecting the arrearage. Write the arrearage balance to history. H: Same as code F. In addition, place the amount in arrears and apply the limits when collecting the arrearage. Write the arrearage balance to history. S: Same as code P. In addition, place the amount in arrears for the current pay period only but do not apply the limits when collecting the arrearage. Do not write the arrearage balance to history. T: Same as code P. In addition, place the amount in arrears for the current pay period only and apply the limits when collecting the arrearage. Do not write arrearage balance to history. I: Same as code F. In addition, place the amount in arrears for the current pay period only, but do not apply the limits when collecting the arrearage. Do not write arrearage balance to history. J: Same as code F. In addition, place the amount in arrears for the current pay period only and apply the limits when collecting the arrearage. Do not write arrearage balance to history.