Oracle HRMS Functional Document

Oracle Payroll Setup
Part 32

This Document is created only for Class Room Training Purpose


By
Regintala Chandra Sekhar
ora17hr@gmail.com

UK PAYROLL


2
Regintala Chandra Sekhar Email ID: ora17hr@gmail.com

A Business Group (BG) holds information about the components of work structures such as jobs, grades
and positions. At the BG level we set up the legislative rules, terms of employment, remuneration policies
and employee work patterns. Oracle HRMS provides the flexibility to define enterprise the following four
basic configurations models,

1. A single operating company in one country.
2. A single operating company in multiple countries.
3. Multiple operating companies in one country.
4. Multiple operating companies in multiple countries

The major reason for creating many business groups is that you enterprise is present in many countries.
The other reasons for creation of more than one BG are:-
1. During acquisitions or mergers there is a need to manage separate structures and processed during a
transition phase.
2. To keep a copy of your live system with example records for training or testing purposes
3. You are a holding company with a number of subsidiary companies and each subsidiary has its own
structures, employees, and compensation and benefit policies.

Process of setup of Business Group

1. Select System Administrator responsibility
2. Define required responsibilities (N: security -> responsibility -> define)
3. Define user and assign responsibilities to the user (N: Security -> user -> define)
4. Select GL Responsibility
5. Define accounting flex field (N: setup -> financial -> flex field -> key -> segments)
6. Give values for your segments (Setup -> financial -> flex field -> key -> values)
7. Define Currency (N: setup -> Currencies -> define)
8. Define Calendar (N: Setup -> financial -> calendar -> Type/Accounting)
9. Create Ledger (N: Setup -> financial -> book -> define)
10. Select HRMS responsibility
11. Define a location (N: Work Structure->Location)
12. Define a Business Group (N: Works Structure->organization->description)
13. Set the following Profile Options to all your responsibilities
HR: Security
HR: Business Group
HR: User Type
GL: Ledger Name
14. Select Inventory responsibility
15. Create legal entity (N: Setup -> organizations -> organizations)
16. Create Operating unit (N: Setup -> organizations -> organizations)
17. Set Profile option MO: Operating unit for all responsibilities
18. Create Work day calendar
19. Create Inventory Organization (N: Setup -> organizations -> organizations)
20. Select sysadmin responsibility and run replicate seed data program.









UK PAYROLL


3
Regintala Chandra Sekhar Email ID: ora17hr@gmail.com

Set the System Date: 01-Jan-2013
Select System Administrator responsibility
1. Define required responsibilities (Nav: Security  Responsibility  Define)

Name: Skylark Groups Pvt Ltd

Set the Profile Options: Date Track Reminder for the Responsibility
Step 1: Nav: System AdminProfileSystem Profile value


2. Define user and assign responsibilities to the user (N: Security -> user -> define)
Name: SKYLARK

Navigation Path

UK PAYROLL


4
Regintala Chandra Sekhar Email ID: ora17hr@gmail.com
Login from your user


Values Set: Value set is primarily a container for your values; you define your value set such that it can
control the types of values that are allowed into the value set (either predefined or non-validated). You
can specify the format of your values.
-Values for the Value Sets, we are defining will be kept in the Oracle Application Object Library tables.
Types of Value sets:
1) Character, 2) Number, 3) Time, 4) Standard Date, Standard Date Time Date, 5) Date Time

Note: When creating value sets using the date format, use the format types Standard Date and Standard
Date Time.
Validation Types for a value set:

UK PAYROLL


5
Regintala Chandra Sekhar Email ID: ora17hr@gmail.com
Define the Values Set for the Job:
Name: SKY_JOB_DEPT_VS Validation Type: Independent


And Assign the List of Values to it
Nav: Application->Validation->Values




UK PAYROLL


6
Regintala Chandra Sekhar Email ID: ora17hr@gmail.com
Dependent Values Set:
 Same like Independent Value Set, except the List of Values shown to you will depends on which the
Independent value you have selected in the Prior Segment
 Must define your independent value set before you define the dependent value set that depends on it

Name: SKY_JOB_NAME_VS



Save it and Click on the Edit Information:


Creation List of Values for the Dependent Values:



UK PAYROLL


7
Regintala Chandra Sekhar Email ID: ora17hr@gmail.com
1. Corporation:


2. Click on the CORP column and press down key you will find the other three Departments
Enter FIN Department Details


3. Next HR Department


UK PAYROLL


8
Regintala Chandra Sekhar Email ID: ora17hr@gmail.com
4. Next IT Department


Position: SKY_POS_NAME_VS


Values Set for People Group Flexfield:
Name: SKY_PEO_GRP_UNI_TYP_VS


UK PAYROLL


9
Regintala Chandra Sekhar Email ID: ora17hr@gmail.com
Assign the List of Values for the People Group



Grade: SKY_GRADE_NAME



UK PAYROLL


10
Regintala Chandra Sekhar Email ID: ora17hr@gmail.com
Assign the List of Values for the Grade



Creation of Key Flexfields

The Key Flexfield Structures must be defined before defining the Business Group in Oracle HRMS. For each
key flexfield, the following must be defined:

o Structure Name
o Flexfield segment names, order, validation options and qualifiers
o Flexfield value sets.

1. Define JOB:
Jobs are meant to describe the duties someone performs, e.g. Engineer, Accountant, and Manager.

Name: SKY_JOB_NAME

Click on Allow Dynamic Insert and Freeze flexfield Definition and Compile it
UK PAYROLL


11
Regintala Chandra Sekhar Email ID: ora17hr@gmail.com


2. Define the Position:
Positions are meant to describe specific instances of that job, e.g. Trainee Engineer, Senior Cost Accountant,
Sales Manager. In other words, Positions are subsets of Jobs.
Click on Open Button uncheck the required check box so that it will not show as be mandatory

Name: Sky_Position_FF


Note: Click on Allow Dynamic Insert and Freeze flexfield Definition and Compile it (see the above fig. Job)
UK PAYROLL


12
Regintala Chandra Sekhar Email ID: ora17hr@gmail.com
3. Define Grade: Grades are used to represent status of employees within an enterprise, or Work Group.
They are also used as the basis of many compensation and Benefits Policies. Grades can be set up against
either a Job or a Position

Name: SKY_GRADE_FF

Note: Click on Allow Dynamic Insert and Freeze flexfield Definition and Compile it (see the above fig. Job)

4. Define Competency:
Define a structure for your competency flexfield which contains the segments you want to use for your
Business Group. You will use this structure to enter competency details for Human Resource, i-
Recruitment and Oracle Training

Name: SKY_COMPETENCE_FF

Note: Click on Allow Dynamic Insert and Freeze flexfield Definition and Compile it (see the above fig. Job)
UK PAYROLL


13
Regintala Chandra Sekhar Email ID: ora17hr@gmail.com
5. Define People Group Flexfield:
Define the Structure for your People Group Flexfield which contains the segments you want to use for
your Business Group. Name: SKY_PEOPLE_Grp_FF

Note: Click on Allow Dynamic Insert and Freeze flexfield Definition and Compile it (see the above fig. Job)

6. Define Cost Allocation Flexfield:
Cost allocation FF is used to map the Accounting FF and GL mapping will be done. If you plan to transfer
costing information to Oracle General Ledger, you should set up at least one segment of the Cost Allocation
key flexfield that maps onto segments of the Oracle General Ledger Accounting key flexfield.
Name: SKY_COST_AllOC_FF
Cost Allocation: Qualifier: Click on the
a. Company : QF: Balancing, Assignment, Element, Organization, Payroll
b. Account : QF: Balancing, Element, Payroll
c. Department : QF: Balancing, Assignment
d. Interdepartmental : QF: Balancing, Organization, Payroll
e. Product : QF: Balancing, Organization


Click on the Flexfield Qualifiers:

















UK PAYROLL


14
Regintala Chandra Sekhar Email ID: ora17hr@gmail.com

a. Place your curser on company and click flexfield qualifier and check the box


b. Place your curser on Accounts and click flexfield qualifier and check the box


c. Place your curser on Department and click flexfield qualifier and check the box


d. Place your curser on Interdepartmental and click flexfield qualifier and check the box
Interdepartmental : QF: Balancing, Organization, Payroll

e. Place your curser on Product and click flexfield qualifier and check the box
Product : QF: Balancing, Organization
Note: Click on Allow Dynamic Insert and Freeze flexfield Definition and Compile it (see the above fig. Job)

UK PAYROLL


15
Regintala Chandra Sekhar Email ID: ora17hr@gmail.com
We have other Key flexfield I will explain it later
a. Bank Details
b. Soft Code
c. Personal Analysis Key flexfield

Creation of Descriptive Flexfield
Descriptive Flexfield is used to just capture extra information. You can define two types of descriptive
Flexfield segments:
Global Segments: Segments always appear in the flexfield window
Context Sensitive Segments: Segment appears only when a defined context exists.

a. Additional Personal Details: We have to query the Existing One and Assign the New One
(Add%Person%Details%) make sure till you get Additional Personal Details


b. Additional Assignment Details

UK PAYROLL


16
Regintala Chandra Sekhar Email ID: ora17hr@gmail.com
c. Add'l Salary Admin. Details: Just Check the It is Freeze or Not


Define the Lookup Types and Values
Lookups are predefined list of Values with Validation Rules for specific segments
System
• All values in the list are predefined by Oracle
Extensible
• Some predefined values are provided
• You can add values to the list
User
• Define new lookup types to validate fields you define during the implementation process
– Flexfield segments
– Element Input Values

Example:






UK PAYROLL


17
Regintala Chandra Sekhar Email ID: ora17hr@gmail.com
Define the Work Location:
Ans Locations are the actual work sites of your employees
– Internal addresses – External addresses for tax authorities, agencies, etc.
• Shared across business groups or specific to one

Check the Start Date first. Change to your BG Responsibility
Name: SKYLARK HEADOFFICE

Adapt the Business Group
A Business Group is a special class of Organization. Every business group can have its own set of default
values, with its own internal organizations, Grades, Jobs, Positions, Payrolls, employees, applicants,
compensations and Benefits
In Oracle EBS, Business Group holds the employee information. If there is a Group of Companies and they
all are using a single instance of Oracle Apps then every employee in each company will be defined at BG
level. Each employee will then be assigned a responsibility. That responsibility determines which company
that employee belongs to and what type of transaction can be carried out. When a fresh EBS instance is
installed it has a Default Business Group namely Setup Business Group.

NAME: SKYLARK GROUPS PVT LTD


UK PAYROLL


18
Regintala Chandra Sekhar Email ID: ora17hr@gmail.com
a. Business Group Information:


Setting up the Security Profile for Business Group:
i. HR:Cross/Business Group as yes/no, if yes. Then user can access data from other Business group too.



ii.HR:Security Profile

UK PAYROLL


19
Regintala Chandra Sekhar Email ID: ora17hr@gmail.com
3. HR: User Type : HR with Payroll


Optional

4. Date Track Reminder: Always pop warning window
5. HR: National Identifier Validation
6. HR: NI Unique Error or Warning

7. MO:Operating Unit, if Multi Org is set up for a BG then this is mandatory to setup ow optional
Profile Option provides the flexibility to the oracle application; they are acting like a global variables .It
eliminates the need to hard code the logic.
Let me give you one example:-An organization have two departments say D1 and D2.We want Manager of
D1 cannot view the employees of D2 and vice versa. Then we will set the profile options
8. MO:Department name or the organization name against the profile option

B. Query your BG and enter Tax Reference Details
Nav: BG RespWork Structure Organizationfind
SKYLARK GROUPS PVT LTD


Creation of Units

Creation of Legal Entity: GRE Type: GRE (India, USA)
Creation of Operating Units: OP Type: Operating Units (Andhra Pradesh or Mumbai, NY or NJ)
Creation of Inventory Organization: Type: (Hyderabad or Vijay Wada, New city or New Jersey)



UK PAYROLL


20
Regintala Chandra Sekhar Email ID: ora17hr@gmail.com
Define the GRE: Government Reporting


Define the Operating Units:
Operating Unit (OU) comes under a ledger with a legal context. “Legal Context” is referred to as the Legal
entity to which it is attached. The purpose of an operating unit is to segregate or separate subledger
transactions. A legal entity having different branches in Pakistan can treat each branch an operating unit

Name: Sky_Operating_Unit

A. Click Others and select Operating Unit information


UK PAYROLL


21
Regintala Chandra Sekhar Email ID: ora17hr@gmail.com

Creation of Payment Methods

a. Cheque Method: Cheque Method

ENABLE THE FOLLWING
Note: Your System Administrator can enable the HR: Default Check/Cheque Number Method profile which
enables you to use the automatic check/cheque numbering process.


b.BACS Method: it is used to transfer the Salary to Bank Account
Name: Bank Payments


Click on Others you will find the BACS Details

UK PAYROLL


22
Regintala Chandra Sekhar Email ID: ora17hr@gmail.com

Creation of Earning Element:
Name: Gross Pay


Define Salary Basis
On what basis we have to pay his salary like Hourly, Monthly, Period Salary, Annually Salary
Name: Monthly_Salary















UK PAYROLL


23
Regintala Chandra Sekhar Email ID: ora17hr@gmail.com

Define Payroll: Payroll refers to the amount paid to employees for services they provided during a
certain period of time
Name: Monthly_Payroll


a. Statutory Information:


b. Click on Valid Payment Methods


c. Link the above created Gross Pay to Payroll (Nav: Total CompenBasicLink)

UK PAYROLL


24
Regintala Chandra Sekhar Email ID: ora17hr@gmail.com

GL Mapping

It is an important process because after the payroll run we have to transfer the accounts to GL and in OTL
we will run a process called Transfer from OTL to GL


Query your monthly payroll and link the Segments



a. Creating a Employee for the Business Group






UK PAYROLL


25
Regintala Chandra Sekhar Email ID: ora17hr@gmail.com
b. Click on Address and Enter all the Necessary information in the fields and Click on Assignments


c.Click on Salary Add and Add his salary


d.Enter the Pay Method for the Employee: Click on Others Payments

UK PAYROLL


26
Regintala Chandra Sekhar Email ID: ora17hr@gmail.com
e. Cheque Method:


f. Bank Transfer


g. Running the Payroll for the Month: Submit a Request



UK PAYROLL


27
Regintala Chandra Sekhar Email ID: ora17hr@gmail.com
Enter Payroll Run for UK and select the following Parameter
a. Payroll Run for UK

b. Prepayments:


c. Cheque Writer Process


UK PAYROLL


28
Regintala Chandra Sekhar Email ID: ora17hr@gmail.com
d. Magnetic Transfer:


e. View the Run Results:

f. Click on Assignments Process


UK PAYROLL


29
Regintala Chandra Sekhar Email ID: ora17hr@gmail.com
g. Click on SOE Report



Thank You....

Regintala Chandra Sekhar
You can get more documents on my blogger: http://ora17hr.blogspot.com