Oracle Fusion HRMS For UK-HR Setup White Paper Feb 2013

An Oracle White Paper
February 2013
Oracle Fusion HRMS (UK):

HR Implementation and Functional
Considerations
Oracle Fusion HRMS: HR Implementation and Functional Considerations
Disclaimer
The following is intended to outline our general product direction. It is intended for information purposes
only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or
functionality, and should not be relied upon in making purchasing decisions. The development, release, and
timing of any features or functionality described for Oracle’s products remains at the sole discretion of
Oracle.
Introduction ................................................................................................................................... 1
What’s in this Document ........................................................................................................... 1
Other Information Sources ........................................................................................................ 1
Document Updates ................................................................................................................... 2
Comments and Suggestions ..................................................................................................... 2
Organization Structures ................................................................................................................ 3
Introduction ............................................................................................................................... 3
Enterprise.................................................................................................................................. 3
Creating an Implementation Project.......................................................................................... 3
Verifying Geographies .............................................................................................................. 5
Defining Enterprise Structures .................................................................................................. 8
Legal Jurisdictions .................................................................................................................... 8
Legal Addresses ..................................................................................................................... 10
Legal Authorities ..................................................................................................................... 11
Legislative Data Groups.......................................................................................................... 12
Legal Entities .......................................................................................................................... 13
Legal Entity Registrations ....................................................................................................... 16
Legal Entity HCM Information for Legal Employers and Payroll Statutory Units..................... 17
Legal Reporting Units ............................................................................................................. 18
Business Units ........................................................................................................................ 24
Workforce Structures .................................................................................................................. 25
Locations................................................................................................................................. 25
Divisions.................................................................................................................................. 26
Departments ........................................................................................................................... 27
Reporting Establishments ....................................................................................................... 28
Roles in Organization.............................................................................................................. 29
Actions Reasons ..................................................................................................................... 34
Managing Workforce Structures ............................................................................................. 37
Personal Data Setup ................................................................................................................... 39
Addresses ............................................................................................................................... 39
Names ..................................................................................................................................... 40
Legislative Information ............................................................................................................ 41
National Identifiers .................................................................................................................. 41
Hiring a Worker ........................................................................................................................... 42
Maintaining Person and Employment Information .................................................................. 46
Terminating a Worker ................................................................................................................. 50
Additional Information for Payroll Interface ................................................................................. 51
Deduction Cards ..................................................................................................................... 52
Banking Setup............................................................................................................................. 56
Banks ...................................................................................................................................... 57
Bank Branches........................................................................................................................ 57
Bank Accounts ........................................................................................................................ 59

Organization Payment Methods .............................................................................................. 59
Consolidation Groups and Payroll Definitions ............................................................................. 66
Consolidation Groups ............................................................................................................. 66
Payroll Definitions ................................................................................................................... 66
Person Payment Information ...................................................................................................... 69
Assigning a Payroll to the Employee ...................................................................................... 69
Assigning Payment Methods to the Employee ....................................................................... 70
Elements and Compensation ...................................................................................................... 72
Elements and Element Templates .......................................................................................... 72
Salary Basis and Compensation ............................................................................................. 76
Conclusion .................................................................................................................................. 82
Glossary ...................................................................................................................................... 82
Introduction
This paper identifies and describes HR setup tasks for Oracle Fusion Human Capital Management for the UK.
What’s in this Document

This document is intended to support the implementation team in understanding:
• The organizational structures that need to be defined to manage HR processes for the UK.
• The UK-specific data that needs to be provided.
• Where predefined UK-specific data can be integrated with customer-specific data.
• The data that needs to be defined to hire and maintain a UK worker.
• The UK-specific business rules that have been implemented.
• The HR processes that can be executed for the UK.
• Information required to support interfacing or transferring data to a third-party payroll system.
• The migration process from a legacy system, by identifying the UK-specific fields that need to be populated by
such migration.
This documentation can also be beneficial to end users who run application processes after implementation.
Note: This document should not be considered a comprehensive guide for HR implementations. The
focus of this document is UK-specific processes and information. For information about generic tasks,
the implementation team should refer to documentation listed in the following section.
Other Information Sources
Oracle Fusion Workforce Deployment Implementation Guide:

http://docs.oracle.com/cd/E28271_01/fusionapps.1111/e20379/toc.htm
Oracle Fusion On-Premise Quick Start Implementation Guide:

https://support.us.oracle.com/oip/faces/secure/km/DocumentDisplay.jspx?id=1395863.1
Oracle Fusion Cloud Quick Start Implementation Guide:

https://support.us.oracle.com/oip/faces/secure/km/DocumentDisplay.jspx?id=1471160.1
Oracle Fusion Global Payroll User Guide:

http://www.oracle.com/technetwork/fusion-apps/payrolluserguider4-1873385.pdf
Oracle Fusion Global Payroll Interface Guide:

http://www.oracle.com/technetwork/fusion-apps/payrollinterfaceguider4-1873384.pdf
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Document Updates
This document is based on the most current application release as of the document’s publication date. Content is
updated as needed only to reflect major changes to existing features or when significant new features are added to
the UK localization. For this reason, it is possible that some minor UI differences may exist between the version
being implemented and the version described in this document.
Comments and Suggestions

Your comments are important to us. We encourage feedback about Oracle Fusion Applications Help and guides.
Please send your suggestions to: oracle_fusion_applications_help_ww_grp@oracle.com.
You may also use the Send Feedback to Oracle link in the footer of Oracle Fusion Applications Help.
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Organization Structures
Introduction
Before a customer can hire a UK worker or run any country-specific process, the implementation team must set up
the organization structures required for the management of HR processes. You can perform all setup tasks using
the Functional Setup Manager (FSM).
The following sections describe how to create an implementation project and define enterprise structures and
related objects required for UK implementations. These structures, which typically contain country-specific
information, must be defined before you can create application users.
Note: For the complete set of setup tasks required for a full implementation, please refer to the
documents listed under Other Information Sources.
Enterprise
The Enterprise classification represents the top structure in the organization that supports partitioning
requirements for Oracle Fusion applications. A person exists within the context of an enterprise. If a person is
associated with two enterprises, the person has two person records.
Since there is no concept of legislation at the enterprise level, no UK-specific attributes are stored at this level;
these attributes must be stored at the level of other structures such as legal entity.
This document does not describe enterprise setup since this structure is defined at a higher level than HR and is
used across product lines.
Creating an Implementation Project

Setup tasks for organization structures should be defined in an implementation project. Follow these steps to
create an implementation project:
1. Sign in to the Oracle Fusion application using a role that has the profile of a super-user and privileges to create
all organizational structures:
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2. Select Setup and Maintenance from the Navigator:
3. On the Implementation Projects tab, click Create:
4. On the Create Implementation Project page, enter the required information and click Next:
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5. Select Workforce Deployment as the offering, since this parent project contains all the tasks needed to set up
HCM organizational structures:
6. Click Save and Open Project.
Verifying Geographies
Geography information is used in Oracle Fusion applications for address entry and geography-based business
processes, such as territory management and shipping. Before defining enterprise structures, the implementation
team must verify predefined geographies and load any additionally required local geographies.
Follow these steps to verify predefined geographies:
1. Select Manage Geographies in the implementation project checklist:
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2. On the Manage Geographies page, select GB and click Search to view the predefined United Kingdom
geography setup and content:
3. Click the green checkmark for each type of geography data you want to verify:
• Address Cleansing Defined:
• Structure Defined:
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• Hierarchy Defined:
• Validation Defined:
4. Verify the information on each page and make any necessary changes, then click Save and Close.
Implementation teams can create new geographies by importing data through interface tables. You can load data
into the interface tables using the Oracle Fusion file-based data import process or the tool of your choice.
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Defining Enterprise Structures

You can now begin the process of defining enterprise structures. All setup tasks are located in the implementation
project task list under Workforce Deployment > Define Common Applications Configuration for Human Capital
Management > Define Enterprise Structures for Human Capital Management, as shown here:
Legal Jurisdictions
All legal entities must be registered against a jurisdiction that is governed by a legal authority. A legal jurisdiction is
a combination of the legislative category (such as labour law, transaction tax law, or income tax law) and the
physical territory (such as a group of countries, a country, a state, or a county) to which legal rules are grounded. A
tax jurisdiction is a geographic area where a tax is levied by a specific tax authority. Jurisdictions must be set up
before creating registrations, because a jurisdiction is required in the registration process. A jurisdiction must also
have a start date and end date to show when the jurisdiction is effective and when you can register against it.
A predefined jurisdiction called United Kingdom HMRC is provided for your use when registering UK legal
entities. To view this jurisdiction:
1. Select Manage Legal Jurisdictions in the implementation project task list:
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2. On the Manage Legal Jurisdictions page, select United Kingdom in the Territory field, and click Search.
3. Select United Kingdom HMRC in the Search Results to display the Edit Legal Jurisdictions page:
The predefined values for this jurisdiction are stored in the record XLE_JURISDICTIONS_B:
TABLE 1. XLE_JURISDICTIONS_B
NAME COLUMN VALUES COMMENTS
Name NAME United Kingdom HMRC
Territory TERRITORY United Kingdom
Legislative Category LEGISLATIVE_CATEGORY HRX_GB_HMRC The value HMRC is predefined in lookup type
LEGISLATIVE_CATEGORY.
Identifying IDENTIFYING No Indicates that registrations under this

jurisdiction are not created automatically.
Legal Entity LEGAL_ENTITY_REGISTRATION_CO RN Indicates that the legal entity registration

Registration Code DE number is used to uniquely identify legal
entities to the legal authority.
Legal Reporting Unit LEGAL_REPORTING_UNIT_REGISTR HRX_GB_PAYE_REF Indicates that the employer’s PAYE reference
Registration Code ATION_CODE is used to uniquely identify legal reporting
units to the legal authority. The value UK
Employer PAYE Reference is predefined for
the UK in lookup type
XLE_REG_CODE_EST.
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Note: An identifying jurisdiction is the one that is automatically associated with all legal entities created for the
territory. It represents the jurisdiction that a company has to register with when first created, such as Chamber
of Commerce or Companies House. Registration information for the identifying jurisdiction is mandatory
when creating a Legal Employer. Since the United Kingdom HMRC jurisdiction is not predefined as an
identifying jurisdiction, an identifying jurisdiction needs to be defined in the implementation phase. You can
create a new identifying jurisdiction or set the Identifying option to Yes for United Kingdom HMRC, which is
recommended:
Note: Do not change any other attributes of the predefined United Kingdom HMRC jurisdiction.
You can create additional jurisdictions as needed using the Manage Legal Jurisdictions task.
Legal Addresses
A legal address is the address of record for an entity. For example, the legal address of a legal authority is used in
communications with that authority. No legal addresses are predefined for the UK. You must create legal
addresses for all organizational units of the enterprise.
To define legal addresses:
1. Select Manage Legal Addresses in the implementation project task list:
2. On the Manage Legal Addresses page, click Create.
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3. On the Location Create page, enter the address information and click OK:
Legal Authorities
Legal authorities are the government entities with which an enterprise interacts, for example to send legal reports.
No legal authorities are predefined for the UK. You must create a legal authority for each government entity, such
as a local tax office, that has a relationship with the enterprise. Later, you will register each legal entity you create
unit with a legal authority.
To define legal authorities:
1. Select Manage Legal Authorities in the implementation project task list:
2. On the Manage Legal Authorities page, click Create.
3. On the Create Legal Authority page:

• Select the Tax Authority Type based on the type of interaction. Typically, this is set to Collecting and
Reporting.
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• Add one or more addresses.

• Add one or more legislative categories, such as the predefined HMRC category. This establishes a link
between the legal authority and all jurisdictions associated with the selected legislative category.
4. Click Save and Close.
Legislative Data Groups
A legislative data group (LDG) defines the payroll and related data partition context for a user, allowing customers
to partition their payroll data. Although an LDG is not an organization, it is included here for completeness.
You can partition payroll data at any of the following levels that are relevant to an enterprise:
• Payroll statutory unit (PSU), where one LDG is required per PSU.
• Country, where one LDG is required per legislation with one or more PSUs.
• Between country and PSU, where a more complex setup is required. For example, partitioning at this level is
appropriate when multiple LDGs are required per legislation with one or more PSUs.
An LDG must be defined in an HR-only implementation if the customer plans to export employee-level
information, such as payment methods or salary, to a third-party payroll system.
If an LDG is associated with a PSU, then whenever a user creates payroll data, the LDG can be derived from the
payroll relationship for the transaction via the PSU association.
The LDG cannot be extended by localizations.
To define an LDG:
1. Select Manage Legislative Data Groups in the implementation project task list:
2. On the Manage Legislative Data Groups page, click Create.

3. On the Create Legislative Data Group page, provide the required information and click Submit:
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Legal Entities
A legal entity is an entity unequivocally identified and given rights and responsibilities under Commercial Law,
through registration with the territory’s appropriate authority. Legal entities have the responsibility to account for
themselves (balance sheet, income statement, specified reports) to company regulators, taxation authorities, and
owners according to rules specified in the relevant legislation.
Legal Employers and Payroll Statutory Units (PSUs): Overview
Oracle Fusion HRMS recognizes different types of legal entities:

• A legal employer is a legal entity that employs workers.
• A payroll statutory unit (PSU) is a legal entity that is responsible for paying workers, including the payment of
payroll tax and social insurance. A PSU can pay and report on payroll tax and social insurance on behalf of one
or many legal entities, depending on the structure of your enterprise.
PSUs provide a way to group legal employers so that certain statutory calculations, such as court orders and some
taxes, can be performed at a higher level. A legal employer can belong to only one PSU, and the PSU represents
the highest level of aggregation for a person. No balances are aggregated across PSUs.
When defining a legal entity, you must consider the context in which it is to be used:
• If it is to be used in an HCM context, designate it as a legal employer. In an HCM implementation, it is
mandatory to define legal employers.
• If it is to be used in a Payroll context, designate it as a PSU.
• You can define a legal entity that is both a legal employer and a PSU.
• If multiple legal employers need to be grouped together for tax reporting purposes, you can associate them all
with a single PSU. If legal employers do not report together, they must not share a PSU.
No legal entities are predefined for the UK. You must create all legal entities that apply to the enterprise you are
setting up.
Legal Reporting Units and Tax Reporting Units: Overview
A legal reporting unit (LRU) is the lowest level component of a legal structure that requires registrations. It is used
to group workers for the purpose of tax and social insurance reporting or to represent a part of your enterprise
with a specific statutory or tax reporting obligation.
If LRUs are used in Oracle Fusion HRMS Payroll for tax reporting purposes, then they are considered tax
reporting units (TRUs). In the Legal Entity Configurator, when you create an LRU that belongs to a PSU, the
application automatically creates a TRU in HCM and associates it with the parent PSU. When you create an LRU
that belongs to a legal employer (that is not also a PSU), you must select a parent PSU. In this way, TRUs are
indirectly associated with a legal employer by association with a PSU.
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TRUs are especially relevant for the UK because the TRU holds the UK Employer’s PAYE Reference number.
The UK Employer’s PAYE Reference is mapped to the Employer Registration Number on the TRU registration.
Similarly, the employer’s Statutory Name is mapped to the Registered Name on the same record. HMRC Office
name and address are mapped to the name and primary address of the legal authority specified on the TRU
registration.
Organization Structure Models Supported by the UK Localization
The sections that follow describe how to define a set of organizational units that comprise the organization
structure required to manage HR processes for the UK. Each enterprise can combine these organizational units in
a different way in order to set up the organizational model that best fits their business needs. Before you begin
creating organizational units, it is helpful to understand the organization structure models supported by the UK
localization.
The following are examples of supported configurations:
• Enterprise 1: 1 PSU with 1 legal employer and 1 TRU
• Enterprise 2: 1 PSU with 1 legal employer and multiple TRUs
• Enterprise 3: 1 PSU with multiple legal employers and multiple TRUs where each legal employer is associated
with a single TRU
• Enterprise 4: 1 PSU with multiple legal employers, where different employers are associated with different TRUs
The figure below illustrates these four configurations. Note that an enterprise can have many PSUs of the same or
different legislative data groups. Also, it is possible for a legal entity to be both a PSU and a legal employer.
PSU / Legal Employer /TRU configurations
Enterprise 1 Enterprise 2 Enterprise 3 Enterprise 4
PSU 1 PSU 2 PSU 3 PSU 4
LEmp LEmp
LEmp 10 LEmp 20 LEmp LEmp
30 31
40 41
TRU TRU TRU TRU TRU TRU TRU

1 2 3 4 5 6 7
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Creating Legal Entities
To define legal entities:

1. Select Manage Legal Entities in the implementation project task list:
2. Click Create to display the Create Legal Entity page:
3. Provide the required information, noting the following:

• If a legal entity is not designated as a payroll statutory unit, you can select an existing payroll statutory unit
to which it belongs.
• The Legal Entity Identifier is just an internal code.
• An identifying jurisdiction must have been previously defined.
• You must have previously defined the legal address for the legal entity.
• The type of registration information required is based on the Registration Code Assignment information
you defined when you created the selected jurisdiction. In this case, Legal Entity Registration Number and
UK Employer PAYE Reference are required for registration with the predefined United Kingdom
HMRC jurisdiction.
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Legal Entity Registrations

Legal entities are connected to legal authorities through legal entity registrations. A registration is automatically
created for the identifying jurisdiction you select when you create a legal entity. If the legal entity is registered with
the United Kingdom HMRC jurisdiction, it can interact with income tax and social insurance legal authorities. If
the legal entity will interact with other legal authorities, you must create additional registrations as appropriate.
To define a legal entity registration:
1. Set the scope for this task as follows:
• Select Define Legal Entities for Human Capital Management in the implementation project task list:
• On the Scope Selection window, select Select and Add:
• Search for and select the legal entity you just created, and then click Save and Close.
2. Select Manage Legal Entity Registrations in the task list.
The Manage Registrations page displays a list of registrations for this legal entity:
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Note: A registration was automatically created for the United Kingdom HMRC jurisdiction when the legal
entity was created, based on the registration details provided.
3. Click Create to add a registration:
4. Enter the required information, noting the following:

• When you select a jurisdiction, the Territory field is populated automatically.
• The Issuing Legal Authority field displays a list of all legal authorities associated with the selected
jurisdiction.
• The Registered Address field displays a list of all predefined legal addresses.
Legal Entity HCM Information for Legal Employers and Payroll Statutory Units
Additional information about legal entities is required for Oracle HCM processes.
To provide HCM information:
1. Set the scope for this task by selecting the legal entity, as you did in Step 1 of the previous task.
2. Select Manage Legal Entity HCM Information in the implementation project task list:
3. If the entity is a legal employer, complete the fields on the Legal Employer tab:
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Note: The Employment Model selection is critical. The UK localization supports all delivered employment
models. Refer to the section on employment models in chapter ‘Define Enterprise Structures for Human
Capital Management’ of Oracle Fusion Applications Workforce Development Implementation Guide
(http://docs.oracle.com/cd/E28271_01/fusionapps.1111/e20380/toc.htm).
4. If the legal entity is also a PSU, click the Payroll Statutory Unit tab:
5. Complete the fields on this tab and click Submit.

Note:
• The Fiscal Year Start for a UK customer should be April 6th of the year the enterprise is going live on
Oracle Fusion HRMS.
• It is at the PSU level that we associate the legislative data group.
For more information about legal entities, refer to the Define Enterprise Structures for Human Capital Management
chapter, Oracle Fusion Applications Workforce Deployment Implementation Guide, Oracle Fusion Applications
Workforce Development Implementation Guide, or Oracle Fusion Applications Compensation Management
Implementation Guide.
Legal Reporting Units

To create an LRU (or a TRU, as it is referred to in HCM):
1. Set the scope for this task as follows:
• Select Define Legal Reporting Units for Human Capital Management in the task list:
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• On the Scope Selection window, select Create New.
Note: An LRU with the same name as the previously created legal entity has been created by default:
This LRU is designated as the main legal reporting unit for the legal entity:
2. To create a second LRU for this legal entity, enter the required information on the Create Legal Reporting
Unit page:
Note: You must provide the UK Employer PAYE Reference.

Additional HCM information is required for a UK TRU, but first you must complete the task described in the
following section.
Unique ID Lists for Year-End Reporting
Before you provide HCM information for a UK TRU, you must create a lookup type containing a list of unique
IDs that can be used when submitting End of Year (EOY) returns for that TRU. Each unique ID represents a part
or subdivision of that TRU’s EOY submission. For example, a TRU might subdivide its EOY submissions into 4
parts or batches, with one EDI file for each part. When you associate a person’s statutory deduction card with a
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TRU, you can also select one of these unique IDs to indicate which part of the EOY submission (that is, which
EDI file) will include this person’s deduction information (P14). This also ensures that all P14s for a deduction
card are reported in the same submission.
No unique ID lookup types are predefined for the UK.
To create a lookup type for a unique ID list:
1. Select Manage Common Lookups from the implementation project task list:
2. Click Create.
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3. On the Manage Common Lookups page, enter the Lookup Type, Meaning, Description, and Module:
Note: The Lookup Type name must include the string ‘UNIQUE_ID”. In the Module field, enter a value that
describes the how the lookup is used, such as ‘GB Work Structures Setup’.
4. Save the lookup type, then create a lookup code for each unique ID that this TRU can submit:
Note:
• Each lookup code meaning identifies one part or subdivision of the EOY submission. Each part can be
submitted in a separate batch to HMRC, so these parts are also referred to as batches and each batch has
a unique id.
• Display Sequence indicates the order in which lookup values will appear in the deduction card UI.
• Leave the Tag field blank.
Note: Lookup codes in this lookup type will be hidden from the user, but the Meaning will be displayed in the
deduction card UI and the EOY archive and reports. Meaning will also be validated in EOY processing as per
HMRC specification.
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After you have defined a unique ID lookup type, you can assign it to a TRU, as described in the next section. A
lookup type can be shared across multiple TRUs. When a Payroll user creates a deduction card for an employee,
they can select a unique ID from the unique ID list defined for the TRU associated with the deduction card.
Note: Once users start using a TRU with the Unique ID lookup type and lookup codes, they should never
change the name of the lookup type on the TRU.
Legal Reporting Unit HCM Information
Additional information about legal reporting units, referred to as tax reporting units in this context, is required for
Oracle HCM processes.
To provide HCM information:
1. Set the scope for this task by selecting the parent legal entity and then the legal reporting unit, as described in
previous tasks.
2. Select Manage Legal Reporting Unit HCM Information in the implementation project task list:
3. On the Manage Tax Reporting Unit HCM Information page, select the legal reporting unit and click Manage
Establishment:
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4. Review the general tax reporting unit details:
5. Click UK Tax Reporting Unit Details to view the UK-specific fields:
6. Complete the following fields and click Submit:

• ECON (Employer Contracted Out Number): Identifier given by the UK authorities to an employer that
contracts out of the state pension scheme.
• EDI Sender ID: Unique identifier given to the employer by HMRC to identify the sender of any EDI
files sent by the employer to HMRC.
• HMRC Office Phone
• Unique ID List: Defines the lookup type containing the list of unique IDs for this tax reporting unit.
When users associate a personal deduction card with a TRU, they can pick a unique ID from this list. (See
Deduction Cards later in this document for more information about selecting a unique ID on the
deduction card.)
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If data is migrated from a legacy system, these UK-specific fields will need to be populated. The following
table shows the attributes of these flexfields, which are contained in record
PER_ORGANIZATION_INFORMATION_EFF:
Business Units
Oracle Fusion HRMS uses the business unit classification to group sets of data that are enabled with the Set ID
functionality. Thus, when you associate a business unit with a default set, this default set is inherited by every entity
connected to the business unit.
No UK-specific data are required or captured at this level. However, it is mandatory to assign a business unit to a
worker in the new hire process, so business units must be created for the enterprise.
To create a business unit:
1. Select Define Business Units for Human Capital Management in the implementation project task list:

2. Click Create.
3. On the Create Business Unit page, provide the required information:
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Note: You must have previously created the location and default set. (Default sets are created using the
Manage Reference Data Sets task. For more information about business units and default sets, refer to the
Oracle Fusion Workforce Deployment Implementation Guide:
http://docs.oracle.com/cd/E28271_01/fusionapps.1111/e20379/toc.htm).
Workforce Structures
Workforce structure setup should be performed once organization structure setup is complete. Workforce
structures are used to:
• Define additional partitioning of the workers within the organization, including divisions, departments, and
reporting establishments.
• Assign roles to workers within the organization, including grades, jobs, and positions.
• Set up actions and reasons that apply to the work relationship cycle of workers.
No workforce structures are predefined for the UK. The implementation team is responsible for defining all the
workforce structures that apply to the enterprise for which the setup is being done. Note that some workforce
structures may not apply to every enterprise.
Locations
The first workforce structures to define are the locations where business is conducted or which are of interest to
the business. Locations can store information about the physical location of a workforce structure and can be
assigned to workers in order to define their physical work location.
To create or manage locations:
1. Select Manage Locations in the implementation project task list:
2. Click Create.
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3. On the Create Location page, provide the required information and click Submit:
Divisions
A division is a high-level organization that supports functionality for roll-up reporting. Division exists above a legal
entity, but below an enterprise. As there is no concept of legislation at the division level, no UK-specific attributes
are stored here.
To create divisions:
1. Select Manage Divisions in the implementation project task list:
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2. Click Create.
3. On the Create Division page, enter the required information:
Note: In the sample screen above, the division is associated with the previously created location. If you are
setting up an HR-only implementation, it is not mandatory to create divisions for the UK. If you are
implementing Oracle Fusion HRMS (UK) Payroll, you must set up divisions because EDI files (such as a
P6/P9) produced by tax authorities are uploaded and attached at the division level. Once the Payroll user
attaches an EDI file to a division, the application can open, read, and process that file. If an HR-only customer
wants to run P6/P9 (passing the data to a third-party payroll), then divisions would need to be defined.
4. Click Next to provide additional division details, and then review and submit.
Departments
A department is a division of a business enterprise dealing with a particular area or activity. You can assign workers
to departments.
No data is required or captured at this level for the UK, but implementation teams can create a department
structure for an enterprise in the organizational structure setup phase of the project.
To create departments:
1. Select Manage Departments in the implementation project task list:
2. Click Create.
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3. On the Create Department page, provide the required information:
Note: In the sample screen above, a location has been selected. Every time this department is connected to
another entity, such as a worker, this location will also be connected to that entity by default.
4. Click Next to provide additional department details, and then review and submit.
Reporting Establishments
A reporting establishment represents an organizational unit used for statutory reporting, other than tax or social
insurance reporting. You can create a new reporting establishment from scratch or you can select an existing TRU
and define it as a reporting establishment.
Reporting establishments are supported but not required in a UK implementation.
To create reporting establishments:
1. Select Manage Reporting Establishments in the implementation project task list:
2. Click Create.
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3. On the Create Reporting Establishment page, select Create New to create a new reporting establishment or
choose Select an existing organization to define as a Reporting Establishment if the reporting
establishment is an existing TRU:
If you choose to select an existing organization, the Search: Organization section is displayed:
Select Tax Reporting Unit in the Classification field and click Search. Then click Select Organization for
the TRU you want to work with.
4. In the Reporting Establishment Description section, provide the required information:
5. Click Next to provide additional details, and then review and submit.
Roles in Organization
A set of workforce structures, including grades, jobs, and positions, must be defined during implementation. These
structures are used to assign a role to each worker in the organization.
Grades
A grade defines the relative rank, level, or status of a worker. It is one of the key building blocks used for managing
compensation.
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To create grades:
1. Select Manage Grades in the implementation project task list:
2. Click Create.
3. On the Create Grade page, provide the required information:
Note: In the sample screen above, this grade is associated with the business unit created earlier.
4. Click Next to define the order of progression between grades:
5. Click Next to define grade rates:
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Grade rates can be used to define pay values for grades in a legislative data group (country). You can add a rate
that was previously defined or create a new rate:
Jobs
A job defines a set of roles or duties that are linked to a worker. Each enterprise should create the job codes that
are suited for its organization.
To create jobs:
1. Select Manage Job in the implementation project task list:
2. Click Create.
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3. On the Create Job page, provide the required information:
Note: In the sample screen above, the selected Job Set is the same as the default set selected for the business
unit. Thus, this job cannot be assigned to workers who belong to a business unit that is connected to a
different job set.
4. Click Next to enter job details:
Note: No UK-specific data is required or captured in the Job Details page or other setup pages for jobs.
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Positions
A position is a specific instance of a job in a department or business unit. The use of jobs or jobs and positions
varies by industry and customer requirements.
To create positions:
1. Select Manage Positions in the implementation project task list:
2. Click Create.
3. On the Create Position page, provide the required information:
Note: In the sample screen above, the position is associated with the previously created business unit. The
business unit you select here determines which jobs, departments, and location values can be selected on
subsequent screens.
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4. Click Next to provide additional position details:
Note: On this page, you can specify optional attributes, such as Full Time or Part Time, Regular or
Temporary, Entry Grade and Entry Step. You can also add previously defined grades that are valid for this
position. No UK-specific data is required or captured in the Position Details page or other setup pages for
positions.
Actions Reasons
Action reasons are useful primarily for analysis and reporting purposes. They provide information about when or
why a specific action, such as termination of a worker, can be taken. They can also be used to trigger a process
based on the value of the action reason. For example, a specific termination reason might trigger the payment of
an indemnity. Action reasons are often used in report fields or selection criteria.
Several action reasons are predefined in the system. Although action reasons are not workforce structures, the
implementation team may want to create additional ones to suit the business needs of the enterprise.
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To view and manage action reasons:

1. Select Manage Actions in the implementation project task list:
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2. On the Manage Actions page, you can search for existing actions and view associated action reasons. You can
also create new actions and action reasons:
The screen below shows the action reasons for the termination action:
3. To create a new action reason for an action, click Create in the Actions Reasons section and complete the
required fields:
The new reason code will be available for selection when a user performs the specified action.
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Managing Workforce Structures

As described in the previous sections, implementers use the setup tasks in FSM to create organization and
workforce structures. Maintenance of such structures can also be done through FSM. For some of these structures,
maintenance tasks are also available in the Workforce Structures work area:
When you select Workforce Structures in the Navigator, the following page is displayed:
Use this work area to manage:

• Positions
• Jobs
• Grades
• Departments
• Locations
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For example, to add an entry grade to the position you created earlier, search for the position on the Manage
Position page and then edit the record to add additional information:
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Personal Data Setup

This section of the document describes the setup and validations that have been predefined for the UK for the
following person information:
• Addresses
• Names
• Legislative information
• National IDs
Addresses
The format in which addresses must be entered for workers located in the UK is predefined and should not be
modified during implementation. The predefined format enables the following fields
• Country (Mandatory)
• Address 1 (Mandatory)
• Address 2
• Address 3
• City or Town (Mandatory)
• County
• Postal Code
The following figure shows how a UK address is captured in the application:
Address Validation
Validation is performed on the Postcode, which must be in one of the following formats:
1. AN NAA
2. ANN NAA
3. AAN NAA
4. AANN NAA
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5. ANA NAA
6. AANA NAA
7. GIR 0AA (historic code)
where:
A is Alpha
N is Numeric
In addition to the above validation, the following rules also apply:
1. The letters Q, V, and X cannot be used in the first position.
2. The letters I, J, and Z cannot be used in the second position.
3. The only letters allowed in the third position are A,B,C,D,E,F,G,H,J,K,S,T,U, and W.
4. The only letters allowed in the fourth position are A,B,E,H,M,N,P,R,V,W,X, and Y.
5. The second half of the postcode is always in the format: numeric, alpha, alpha. The letters
C,I,K,M,O, and V are not allowed.
Names
The format in which names must be entered for workers located in the UK is predefined and should not be
modified during implementation.
The UK name format follows the standard format used in Oracle Fusion:
• Last Name
• Title
• First Name
• Middle Name
• Preferred Name
• Previous Last Name
The following figure shows how a UK name is captured in the application:
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Legislative Information
UK-specific legislative information can be captured for each person. None of these fields is mandatory, and it is up
to the enterprise to decide which data needs to be entered.
The UK supports the following legislative information:
• Marital Status: Uses UK-specific values in the lookup
• Ethnicity: Uses UK-specific values in the lookup
• Highest Education Level
The following figure shows how UK legislative information is captured in the application:
The UK-specific PER_PERSON_LEGISLATIVE_DATA_LEG_DDF includes the following flexfields:

• NI Number Verified (PER_INFORMATION1)
• Verified Date (PER_INFORMATION_DATE1)
• Response Status Returned (PER_INFORMATION2)
• Verification Type (PER_INFORMATION3)
• Correlation ID (PER_INFORMATION4)
These fields are not mandatory and are used for RTI (Real Time Information). The following predefined lookups
are associated with these flexfields:
• NI Number Verified: HRX_GB_NI_NUMBER_VERIFIED
• Response Status Returned: HRX_GB_NI_RESPONSE_STATUS
• Verification Type: HRX_GB_NI_NUMBER_VERIFICATION
Note: Refer to the .xls document that accompanies this white paper for a complete list of predefined lookup and
flexfields for the UK.
National Identifiers
The following validation has been delivered for the UK National Insurance (NI) Number:
• If the NI number is not null then its length must be either 8 or 9 character AND
• The first 2 characters of the NI number must be alphabets (a-z or A-Z) AND
• The first 2 characters must be in the list of valid NI number prefixes as defined in the lookup
HRX_GB_NI_VALID_PREFIX) AND
• Characters 3-8 must be numeric (0-9) AND
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• If character 9 is present then it must be either A or B or C or D or Space.

The following figure shows how a national identifier is captured in the application:
Hiring a Worker
Once the organizational and workforce structures have been defined by the implementation team, the user is ready
to manage workers’ data in the application. To perform tasks related to person and employee management, you
would typically sign in to the application using a role connected to a user, such a Human Resource Specialist,
rather than to a member of the implementation team:
The new hire process is the first task in the workforce lifecycle.
To hire an employee:
1. Select New Person under Workforce Management in the Navigator:
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2. In the task list on the left, select Hire an Employee:
Note the other supported person types for the UK:

• Contingent Worker
• Non Worker
• Pending Worker
3. On the Identification page, provide the required information:
Note the following:

• The Hire Reason field displays a list of valid action reasons defined for the hire action.
• The Legal Employer field displays a list of all legal employers for the UK.
• The name format is determined by the predefined name formats for the UK.
• The Date of Birth and Gender fields are not mandatory for HR implementations, but they are mandatory
for UK Payroll implementations.
• National ID is validated according to the predefined National Identifier UK rules.
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4. On the Person Information page, provide the required information:
Note the following:

• An address is required and must conform to the predefined UK Address format.
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• The following additional information is optional for the UK:

o Phone and E-Mail.
o Marital Status, Ethnicity, and Highest Education Level fields in UK-specific Legislative Information
section
o Citizenship and Visa Information
o Emergency Contacts
5. On the Employment Information page, provide the required information:
Note the following:

• Because the employer in this example uses the 3-tier employment model (as selected in legal employer
setup), employment information must be entered at both the terms and assignment levels. To enter
information at the assignment level, click the Assignment tab.
• The Business Unit, Job, Grade, Department and Location must have been previously defined. The
Business Unit you select determines which jobs, grades, and departments you can select.
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Maintaining Person and Employment Information

Once the new hire process is complete, the person is recorded in the system. Payroll users can modify person and
employment information as needed, and add data not entered in the new hire process. Some information, such as
birth and disability information, cannot be entered in the new hire process and must be entered during
maintenance.
Person Management
To maintain person information:

1. Select Person Management under Workforce Management in the Navigator:
2. Search for and select the person record:
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3. Navigate through the various tabs to view and manage the complete set of person information. Select either
Edit>Correct or Edit>Update to modify the information in any section.
Person Information:
Contacts:
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Documents:
Disabilities:
Extra Information:
This tab is used to capture country-specific person information. There are no UK-specific fields on the Extra
Information tab.
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Employment Management
The Person Management work area also provides tasks for maintaining employment information.
From here, you can modify an existing instance of employment or add a new instance if, for example, an employee
has a job change.
In the following screen, Reporting Establishment is added to an existing employment instance for the employee:
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Terminating a Worker
When a person’s employment period ends, the work relationship must be terminated.
To terminate a work relationship:
1. Select Manage Work Relationship in the Person Management work area.
2. On the Manage Work Relationship page, select Terminate from the Actions menu:
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3. On the Terminate Work Relationship page, enter the details of the termination, including the termination
reason:
Note: The Termination Reason field displays a list of Action Reasons associated with the termination action,
as described earlier in this guide.
Additional Information for Payroll Interface

The setup tasks described up to this point in this document are required to manage the HR processes for an
enterprise. If the enterprise will also be running Oracle Fusion HRMS (UK) Payroll, additional information must
be provided to support payroll processes. Setup tasks for Oracle Fusion Payroll are outside the scope of this guide.
If the enterprise is not implementing Oracle Fusion Payroll but will be extracting data from the Oracle Fusion
application, via the Payroll Interface, to feed an external payroll system, additional payroll-related data must be
provided to support the Payroll Interface. Detailed documentation for the Payroll Interface can be found in the
Global Payroll Interface Guide (http://www.oracle.com/technetwork/fusion-apps/payrollinterfaceguider4-
1873384.pdf). The sections that follow describe how to define payroll-related information to support the Payroll
Interface for UK implementations:
• Deduction Cards
• Consolidation Groups
• Payroll Definitions
• Organizational Payment Methods
• Personal Payment Method
• Elements and Gross Compensation
.
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Deduction Cards
A deduction card captures values required for calculating and processing payroll deductions. To support the
Payroll Interface, you must create a deduction card for each person for whom payroll deductions will be processed.
Creating the Deduction Card
To create a personal deduction card:

1. Sign in using a role that has privileges to manage payroll information:
2. Select Person Management from the Navigator:
3. Search for and select the employee for whom you want to create the card.
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4. Select the Manage Payroll Deductions task:
5. Click Create:
6. Select Statutory Deductions in the Name field to define data needed for calculating and reporting taxes
(PAYE) and social security (NI):
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Adding Deduction Components for PAYE and NI
To add the required information for processing NI and PAYE deductions:

1. In the Deduction Overview pane, select National Insurance:
Note: Two deduction components, Aggregation Information and NI, were created automatically. An
Aggregation Information deduction component details record was also created. Although the NI component
was created automatically, you must assign a NI category to the component before the deduction can be
processed.
2. Click the NI component in the Deduction Components region, and then click Edit>Correct.
3. Select the NI category and the Pension Basis, and click OK.
Note: Only certain combinations are allowed, based on UK statutory rules.

You can create additional NI components, one for each NI category applicable to this payroll relationship.
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4. In the Deduction Card Overview section, click Taxes:
Note: A PAYE component was created automatically. The PAYE component defines the calculation
breakdown level for payroll processing. Thus, if a person has more than one PAYE component, a separate
gross-to-net calculation will be executed for each one, and hence a separate payslip will be issued as well.
5. In the Deduction Component section, select the PAYE component and click Edit>Correct. This is required, as the
component has no Works Number.
6. Enter the Works Number and click OK:
7. In the Deduction Component Details section, provide the required information:
Note: You must enter a valid Tax Code and a Tax Basis, such as Cumulative. All other fields are optional.
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Creating Associations
You must associate the deduction card with a tax reporting unit (TRU). You must also associate each deduction
component with employments terms (or with an assignment in a three-tier employment model).
To define associations:
1. In the Deduction Card Overview pane, click Associations.
2. Click Create in the Associations section.
3. On the Create Association window, select the TRU responsible for reporting deductions for this person:
Note: If the selected TRU supports multiple-part P14 year-end electronic submissions, you can select the
unique ID of the part or batch in which to include this employee's deductions. The Unique ID field displays
all unique IDs that the selected TRU can submit (based on the Unique ID List assigned to the TRU).
Do not select a deduction component.
4. Click OK, and then click Save to save the association.
5. In the Association Details section, click Create.
6. On the Create Association Details window, select the employment terms number and deduction component,
then click OK.
Note: If the employer uses a 3-tier model, you will select an assignment rather than an employer terms
number.
7. Repeat steps 5 and 6 for each NI and PAYE component. Each component must be associated with an
employment terms or assignment.
8. Save the deduction card.
UK Deduction Card Flexfields
Refer to the .xls document that accompanies this white paper for a complete list of predefined deduction card
flexfields for the UK.
Banking Setup
An HR customer may want to add payee banking information even if payroll is not processed by Oracle Fusion
Payroll for UK. For example, banking setup may be required for reporting purposes or because the data may be
passed to other products, such as an expenses module.
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To accommodate this scenario, the setup of banks and branches must be done before entering bank accounts and
payment methods for the payee. Additionally some payroll setup, described later in this document, would be
needed.
No banks or branches are predefined for the UK. Banks and branches must be defined during implementation.
This can be done manually, by entering the banks and branches in the application, or it can be done in a mass
upload process.
Banks
To define banks:
1. Sign in to the application with a role that has implementation privileges, such as
APPL_IMP_CONSULTANT.
2. Select Manage Banks in the implementation project task list:
3. Click Create.
4. On the Create Bank page, provide the required information:
Bank Branches
To define branches for the banks you created:
1. Select Manage Bank Branches in the implementation project task list:
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2. Click Create.
3. On the Create Bank Branch page, provide the required information:
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Bank Accounts
Once banks and branches are set up, you can define the bank accounts that are needed for the organization.
Normally, implementation teams set up bank accounts that are used at an organizational level, such as the source
bank accounts for payments, rather than bank accounts at the individual payee level.
No bank accounts are predefined for the UK.
To define bank accounts:
1. Select Manage Bank Accounts in the implementation project task list:
2. Click Create.
3. On the Create Bank Branch page, provide the required information:
Note: If you want to use this bank account for processing payments related to payroll, select the Payroll
option in the Account Use field.
Organization Payment Methods

After setting up banks, you can define the payment methods that can be used within the organization itself.
No organization payment methods are predefined for the UK. Implementation teams will need to create the ones
applicable to the enterprise.
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To define organization payment methods:

1. Select Manage Organization Payment Methods in the implementation project task list:
2. Click Create.
3. Select the legislative data group associated with this payment method:
4. On the Create Organization Payment Method page, enter the required information:
Note: The UK supports the following Payment Types: BACS, Cheque, and Cash Payment.
If you select BACS, the page is refreshed to show fields related to electronic file transfer (EFT):
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Configuring for BACS
You can configure BACS for single-file, single-day format or multi-file, single-day format.
To set up single-file, single-day format:
1. In the Electronic Funds Transfer File Information section, leave Bureau Name and Bureau Reference
blank:
2. Enter the appropriate values for Transaction Limit and BACS File Limit.
3. In the Payment Sources section, click Create.
4. On the Create Payment Source page, enter a Name and select a Bank Account Name:
5. Enter the BACS User Number and Contra Narrative.
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To set up multi-file single-day format:

1. In the Electronic Funds Transfer File Information section, enter the Bureau Name, Bureau Reference
Transaction Limit, and BACS File Limit:
2. In the Payment Sources section, click Create.

3. On the Create Payment Source page, enter a Name and select a Bank Account Name:
4. Enter the BACS User Number and Contra Narrative.
Net Pay Balance
During the payment process, the net pay balance is used to store the amount to be transferred as remuneration for
the payee. A net pay balance, named Total Pay, is predefined for the UK, and no additional setup is required
during the implement phase.
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To view the Total Pay balance:

1. Select Manage Balance Definitions in the Payroll Calculations or Setup and Maintenance work areas.
2. Enter Total Pay in the Name field and select a UK LDG, then click Search:
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3. Click the Total Pay balance in the Search Results to view the balance information:
Note: The Use for Remuneration field is set to Yes.

4. Click Balance Dimensions in the left panel to display the dimensions associated with this balance:
Note: The Core Relationship Payments has been associated with this balance.
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Consolidation Groups and Payroll Definitions

Consolidation groups and payroll definitions are normally concepts related to payroll, but if an HR-only customer
has the requirement to assign banking details for the employee, then these objects must be set up first.
Consolidation Groups
Consolidation groups are used within the organization to enable grouping of different payrolls for reporting
purposes. No consolidation groups are predefined for the UK. If you will be creating payroll definitions for the
implementation, you must define at least one consolidation group first since it is mandatory information for payroll
definitions.
To set up consolidation groups:
1. Sign in to the application with a role that has implementation privileges, such as
APPL_IMP_CONSULTANT.
2. Select Manage Consolidation Groups in the implementation project task list:
3. On the Manage Consolidation Groups page, click Add Row:
4. Enter a name and select a legislative data group. Description is optional, but useful to provide.
5. Click Save.
Payroll Definitions
Payroll definitions contain calendar and offset information that determine when payments are calculated and
costed. Using payroll definitions, you can specify payment frequency, processing schedule, and other parameters
for a particular payroll. Payroll period types, such as weekly or monthly, determine the interval at which you pay
employees.
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Each payroll definition can be associated with only one payroll period type, and you must set up at least one
payroll definition for each payroll period type that you use to pay employees. When you create a payroll definition,
the complete payroll schedule is automatically generated, based on the selected payroll period type, any offsets or
calendar adjustments, and the number of years that you specify. Once you have saved a payroll definition, you can
assign employees to it on the Manage Payroll Relationships page.
Before you can create a payroll definition, you must have already defined a legislative data group and consolidation
group.
No payroll definitions are predefined for the UK.
To set up payroll definitions:
1. Select Manage Payroll Definitions in the implementation project task list:
2. Click Create.
3. Select the LDG for this payroll definition, and click Continue:
4. On the Create Payroll page, enter the required information:
Note the following:

• You must select an existing consolidation group.
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• Click Add Row in the Valid Payment Methods section to add an organization payment method to use as
the default, plus any additional payment methods that are valid for this payroll. You can select any
organization payment method defined for the LDG that is linked to this payroll definition.
5. Click Next, and provide the required information on the Payroll Offsets page:
In the sample screen above, only the basic information required to create a payroll definition (for the purpose
of assigning a payment method to an employee) is provided.
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Person Payment Information

To add payment information for an employee, you must assign a payroll definition to the employee even if you will
not be processing payroll for the employee using Oracle Fusion Payroll.
For more information about personal payment methods, refer to the Oracle Fusion Global Payroll User Guide
(http://www.oracle.com/technetwork/fusion-apps/payrolluserguider4-1873385.pdf).
Assigning a Payroll to the Employee

If a payroll definition was not assigned to the employee during the hire process, follow these steps to do so:
1. Sign in to the application with a role that has payroll privileges, such as PAY_MGR_ALL.
2. Select the Manage Payroll Relationships task in the Payroll Calculations or Payment Distribution work area:
3. Search for and select the employee.

4. On the Manage Person Details page, add the payroll in the Payroll Details section:
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Assigning Payment Methods to the Employee

Once banks and branches have been loaded in the system and a payroll definition has been assigned to the
employee, you can add payment methods to the employee record.
To assign personal payment methods:
1. Select the Manage Personal Payment Methods task in the Payroll Distribution work area:
2. Search for and select the employee.

3. On the Manage Person Details page, click Create:
4. On the Personal Payment Method page, select the Organization Payment Method for this employee:
Note:
• If the payment type is EFT, you must add a bank account and provide banking details:
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An employee can have multiple payment methods.

• Use the Payment Amount Type and Percentage fields to manage distribution across different payment
methods.
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Elements and Compensation

Even if elements are normally used in a payroll project only, the implementation team of an HR project may need
to create a regular earnings element and connect it to compensation information, such as basic salary or other
gross compensation elements.
Elements may also be used in the process of calculating gross compensation for the Payroll Interface.
Elements and Element Templates
Elements are created through predefined element templates, which provide the user with an intuitive user interface
and manage the creation of different types of elements and their associated objects. The template engine gets a set
of rules from the template and processes the predefined template structure to create appropriate data.
A set of element templates is predefined for the UK. The following UK templates are used to create base pay and
compensation earnings:
• Regular Earnings
• Irregular Earnings
The following steps show how to create a regular earnings element for basic salary:
1. Select Manage Elements in the Setup and Maintenance or Payroll Calculations work area:
2. On the Manage Elements page, click Create.

3. On the Create Element window, select a legislative data group and a primary classification, then click
Continue:
4. Complete the fields at the top of the Create Element page, and then answer the questions:
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Note: The questions and default answers shown here are based on the predefined UK element template for
regular earnings. Your answers drive the definition of the earnings element to be created.
5. Click Next, and complete the rest of the questionnaire:
6. Verify the information and click Submit to create the new element:
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7. On the Element Summary page, provide additional information as needed, such as input values, processing
rules, and eligibility:
Use the Element Overview panel to navigate through the setup pages.
Note: Element eligibility must be defined so the element can be linked to an element entry (and hence to
gross compensation).
8. In the Element Overview panel, select Actions>Create Element Eligibility.
9. On the Element Eligibility page, enter a name in the Element Eligibility Name field and click Submit.
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Note: By entering only a name and no eligibility criteria, the element is eligible for all employees.
10. Click an Input Value in the left panel to provide additional information as needed:
11. Repeat this entire process to create a set of elements to support your business needs. For example, you might
create another element for a car allowance.
Element Entries
For earnings to be associated with a person, you must create an element entry for that person and that element. In
the sections that follow, you will see how an element entry is automatically generated by creating a Salary Basis or a
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Compensation entry for the payee. Other processes (described in detail in the Oracle Fusion Global Payroll Guide)
can also be used to create element entries for a person.
Salary Basis and Compensation

Once you have created the elements that are meant to hold the payee basic salary and compensation information,
you can perform the setup required to attribute the gross compensation to the payee.
Salary Basis
To set up the salary basis:

1. Sign in to the application with a role that has compensation administrator privileges, such as
CMP_ADMIN_ALL.
2. Navigate to Compensation work area:
3. Select Manage Salary Basis, and then click Create:
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4. On the Create Salary Basis page, select the payment element to use for the salary basis and provide the
required information:
Individual Compensation
To create a compensation plan, such as for a car allowance:

1. In the Compensation work area, select Manage Plans and click Create:
2. Select the payroll element for the compensation plan, such as a car allowance:
3. Select the Dates tab and set the payment start and end dates:
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4. Select the Eligibility tab to define eligibility for the plan:
5. Select the Plan Access tab and indicate whether to restrict access to this plan:
6. Select the Instruction Text tab and add any user instructions you want to associate with the plan.
Assigning Salary Basis and Compensation to a Payee
Once you have completed setup for Salary Basis and Compensation, you can assign them to the payee.
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Adding a Salary
1. Select Manage Salary in the Person Management work area:
2. Click Create, then complete the fields on the Add Salary window:
3. On the Manage Salary page, select the previously created Salary Basis and enter a Salary Amount, such as
2000 GBP per month:
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When you save this record, an element entry with the specified start and end dates is automatically generated. You
can view the entry on the Manage Elements page:
Note that an annualized value of the compensation is given to the Salary Basis. The salary element entry is passed
to the Gross Compensation calculation process, which prepares compensation data for the Payroll Interface.
Adding Compensation
1. Select Manage Compensation in the Person Management work area:
2. On the Manage Compensation page, click Award Compensation:
3. On the Award Compensation window, select the previously created compensation plan and enter the
compensation amount, such as 500 GBP for a car allowance:
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When you save this record, an element entry with the specified start and end dates is automatically generated. You
can view the entry on the Manage Elements page:
The compensation element entry is passed to the Gross Compensation calculation process, which prepares
compensation data for the Payroll Interface.
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Conclusion
This document has provided a set of information useful for anyone implementing or using Oracle Fusion HRMS
(UK) HR.
In order to verify that all the tasks needed in an implementation have been performed, we recommend referring to
the documents mentioned in the Other Information Sources section.
Glossary
business unit
A unit of an enterprise that performs one or many business functions that can be rolled up in a management
hierarchy. A business unit can process transactions on behalf of many legal entities.
consolidation group
A grouping of payroll runs within the same time period for which you can schedule reporting, costing, and post-
run processing.
deduction card
A mechanism for capturing values required for calculating payroll deductions at the level of a payroll statutory unit,
tax reporting unit, or payroll relationship. At the payroll relationship level, this is called a personal deduction card.
deduction component
An individual deduction captured on a deduction card. Typically relates to a deduction element for which the
deduction component creates an entry.
department
A division of a business enterprise dealing with a particular area of activity.
division
A business-oriented subdivision within an enterprise. Each division is organized to deliver products and services or
address different markets.
enterprise
An organization with one or more legal entities under common control.
flexfield
Grouping of extensible data fields called segments, where each segment is an attribute added to an entity for
capturing additional information.
geography structure
A hierarchical grouping of geography types for a country. For example, the geography structure for United States
is: State, County, City, and then Postal Code.
identifying jurisdiction
The first jurisdiction a legal entity or establishment must register with to be allowed to do business in a country.
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LDG
Abbreviation for legislative data group.
legal authority
A government or legal body that is charged with powers such as make laws, levy and collect fees and taxes, and
remit financial appropriations for a given jurisdiction.
legal employer
A legal entity that employs people.
legal entity
An entity is identified and given rights and responsibilities under commercial law, through the registration with the
country's appropriate authority.
legal jurisdiction
A physical territory, such as a group of countries, single country, state, county, parish, or city, which comes under
the purview of a legal authority.
legal reporting unit
The lowest level component of a legal structure that requires registrations. Used to group workers for the purpose
of tax and social insurance reporting or represent a part of your enterprise with a specific statutory or tax reporting
obligation.
legislative data group
A means of partitioning payroll and related data. At least one legislative data group is required for each country
where an enterprise operates. Each legislative data group is associated with one or more payroll statutory units.
location
The physical address of a workforce structure, such as a department or a job.
LDG
Abbreviation for legislative data group.
payroll statutory unit
A legal entity registered to report payroll tax and social insurance. A legal employer can also be a payroll statutory
unit, but a payroll statutory unit can represent multiple legal employers.
Process configuration group
A group of action parameters that set options, mainly related to performance and logging, for payroll processes. A
few parameters control other features, such as element templates, dates, and report output location.
registration
The record of a party's identity related details with the appropriate government or legal authorities for the purpose
of claiming and ensuring legal and or commercial rights and responsibilities.
83
reporting establishment
An organization used in the production of human resources (HR) reports that are required by government
agencies.
tax reporting unit
A legal entity that groups workers for the purpose of tax and social insurance reporting.
84
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Oracle Fusion HRMS (UK):

Bank Accounts ........................................................................................................................ 59

What’s in this Document

Other Information Sources

Oracle Fusion Workforce Deployment Implementation Guide:

Oracle Fusion On-Premise Quick Start Implementation Guide:

Oracle Fusion Cloud Quick Start Implementation Guide:

Oracle Fusion Global Payroll User Guide:

Oracle Fusion Global Payroll Interface Guide:

Comments and Suggestions

Creating an Implementation Project

2. Select Setup and Maintenance from the Navigator:

3. On the Implementation Projects tab, click Create:

6. Click Save and Open Project.

Defining Enterprise Structures

NAME COLUMN VALUES COMMENTS

Name NAME United Kingdom HMRC

Territory TERRITORY United Kingdom

Identifying IDENTIFYING No Indicates that registrations under this

Legal Entity LEGAL_ENTITY_REGISTRATION_CO RN Indicates that the legal entity registration

2. On the Manage Legal Addresses page, click Create.

2. On the Manage Legal Authorities page, click Create.

3. On the Create Legal Authority page:

• Add one or more addresses.

Legislative Data Groups

2. On the Manage Legislative Data Groups page, click Create.

Legal Employers and Payroll Statutory Units (PSUs): Overview

Oracle Fusion HRMS recognizes different types of legal entities:

Legal Reporting Units and Tax Reporting Units: Overview

Organization Structure Models Supported by the UK Localization

PSU / Legal Employer /TRU configurations

Enterprise 1 Enterprise 2 Enterprise 3 Enterprise 4

PSU 1 PSU 2 PSU 3 PSU 4

TRU TRU TRU TRU TRU TRU TRU

Creating Legal Entities

To define legal entities:

2. Click Create to display the Create Legal Entity page:

3. Provide the required information, noting the following:

Legal Entity Registrations

• On the Scope Selection window, select Select and Add:

4. Enter the required information, noting the following:

5. Complete the fields on this tab and click Submit.

Legal Reporting Units

• On the Scope Selection window, select Create New.

Note: You must provide the UK Employer PAYE Reference.

Unique ID Lists for Year-End Reporting

Legal Reporting Unit HCM Information

4. Review the general tax reporting unit details:

5. Click UK Tax Reporting Unit Details to view the UK-specific fields:

6. Complete the following fields and click Submit:

3. On the Create Department page, provide the required information:

5. Click Next to define grade rates:

3. On the Create Job page, provide the required information:

4. Click Next to provide additional position details:

To view and manage action reasons:

Managing Workforce Structures

Use this work area to manage:

Personal Data Setup

The UK-specific PER_PERSON_LEGISLATIVE_DATA_LEG_DDF includes the following flexfields:

• If character 9 is present then it must be either A or B or C or D or Space.

2. In the task list on the left, select Hire an Employee:

Note the other supported person types for the UK: