An Oracle White Paper

May 2012

Oracle Fusion Human Capital Management:

International Human Resources
 Oracle Fusion Human Capital Management: International Human Resources

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 Oracle Fusion Human Capital Management: International Human Resources

Introduction ........................................................................................2
Oracle Fusion HCM International HR Configuration ...........................3
Enterprise Structures ......................................................................3
Names ............................................................................................3
National Identifier ...........................................................................3
Configure Legislations for Human Resources.....................................4
Additional Payroll Setup for HR Users ................................................6
Further Considerations .......................................................................6
Security ..........................................................................................6
Reporting........................................................................................6
Interfaces .......................................................................................6
Deployment models ........................................................................7
Further Reading .................................................................................7

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 Oracle Fusion Human Capital Management: International Human Resources

Introduction

The Oracle Fusion HCM product family consists of many products, including Global Human Resources
(HR), Global Payroll, Benefits, Time and Labor, as well as Talent Management. All of these products are
designed to be used globally. Some of these products, especially HR and Payroll, require a high level of
statutory compliance. Oracle Fusion HCM delivers many legislations. The International HR and Payroll
setup task lists provide the ability to set up legislations where Oracle Fusion HCM has not yet delivered
one. These tasks are also useful for organizations, such as the United Nations, which operate in many
host countries but have unique requirements and commitments that require additional configuration.

The International Payroll setup task list is described in a separate white paper (article ID 1453008.1 on
My Oracle Support).

This white paper focuses on the setup task list for International HR configuration but will also cover
additional configurations as needed.

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 Oracle Fusion Human Capital Management: International Human Resources

Oracle Fusion HCM International HR Configuration

With the Global HR model, you can use the HR features with little configuration, regardless of country.
Areas to note include:
 Enterprise structures
 Names
 National identifiers

Enterprise Structures
Legal employers must be mapped to payroll statutory units (PSU) and legislative data groups (LDG) correctly.
PSUs group multiple legal employers to determine reporting and other payroll hierarchies.
LDGs contain information on country, currency, and other important legislative information.
PSUs and LDGs are required for the creation of employee payroll relationships. Payroll relationships are required
for element entries, which are used in absence management and other areas. They are also required for payroll
processing using Oracle Fusion Global Payroll or a third-party payroll product. If this setup is done incorrectly, it
can also impact your benefits and compensation management.

Names
You can enter a global name as well as a local name for people. The local name can be in a language other than
English where multi-language support is available and enabled.
The global name can also be in a language other than English. It is an enterprise value that you can set using the
Global-Name Language field.

Figure 1: UI showing the Personal Details configuration task.

National Identifier
The National Identifier is specific to a country. You can set it up through the lookup table:
PER_NATIONAL_IDENTIFIER_TYPE.

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 Oracle Fusion Human Capital Management: International Human Resources

Configure Legislations for Human Resources

The Configure Legislations for Human Resources task helps you to set up areas that are needed for HR
localizations where Oracle has not yet delivered a configured legislation. Depending on whether you use Global
HR only or also use Oracle Fusion Global Payroll Interface, a different setup may be required. You can accept
the default settings, where available, and return to the page at a later time to change the settings.

Figure 1: Functional Setup Manager UI showing the Define Elements, Balances and Formulas configuration tasks.

Task Name: Configure Legislations for Human Resources

You complete several pages in this task.

 Country
Select the name of the country or territory for which you want to define a legislation.
Note: Countries where the legislation is delivered by Oracle, or which have been configured in a prior
implementation, appear as installed countries on this page and are not available for selection.
 Currency
Currency defaults to that of the country selected. You can change it to a different currency.
 Tax Year Start
Choose the day and month when the income tax balances reset to start annually.

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 Oracle Fusion Human Capital Management: International Human Resources

 Period of Service on Rehire

o Create New Record
Creates a new payroll relationship each time there is a new employment.
o Use Last Record
Creates a new payroll relationship only if there is an interruption in employment; otherwise, an
existing payroll relationship is used.
o Use Lifetime Record
Restarts an existing payroll relationship at the time of rehire.
 Primary Classifications
Select which element classifications can be used for the legislation. You can rename the classifications to
the names commonly used in that legislation.
 Payment Types
Choose from the following payment methods:
o Cash
o Check
o Electronic Funds Transfer (EFT)
You can rename the above payment methods to names that are appropriate to your legislation.
 Deduction Groups
Select which statutory deductions apply for your legislation:
o Federal (commonly known as Income Tax)
o Social Insurance
You can rename these groups to the taxation and social insurance bodies appropriate to your legislation.
 Balance Dimensions
The most common balance dimensions are already selected by default. You can add or remove them as
appropriate.

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 Oracle Fusion Human Capital Management: International Human Resources

Additional Payroll Setup for HR Users

After completing the Configure Legislations for Human Resources task, you might need to set up these
additional areas:
 Element templates (required for users of Benefits, Compensation, and Time and Labor)
The Manage Elements task is a guided flow for creating the relevant elements. For HR users, this can be any
earnings, deductions, or information elements required.
 Deduction cards (required only if using Global Payroll Interface)
Use the Manage Payroll Deductions task to attach a deduction card to each payee so that the appropriate
payroll calculation can be applied correctly.
 Payroll definitions (required to establish payroll periods)
For nonrecurring elements, a payroll definition must be set up with appropriate payroll periods, offsets, and
other information. Use the Manage Payroll Definitions task.
 Payment method and account information (required for payees)
Use the Manage Personal Payment Methods task to enter the payment method and account information for
payees.

Further Considerations
Security
Oracle Fusion uses a common security model. This is a role-based access model and allows appropriate users to
view and edit areas depending on their roles. Refer to the Oracle Fusion Security documentation for further
information.

Reporting
Using the Oracle Fusion common reporting model, you can create reports using the appropriate reporting
infrastructure. Oracle has reporting tools, such as the Oracle Hyperion product, that you can use with any Oracle
application.

Interfaces
Oracle Fusion Global Human Resources provides interfaces, although some require a separate license. Interfaces
available at the time of this publication include:
 HR2HR interface, which allows PeopleSoft HR to co-exist with Fusion HCM
 Oracle Fusion Global Payroll Interface, which is a separately licensed product enabling the setup and transfer
of data from Oracle Fusion HR to third-party payroll products.

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 Oracle Fusion Human Capital Management: International Human Resources

Deployment models
It is expected that all Oracle Fusion HCM products will work with any deployment models, namely SaaS, On-
Premise, Outsource, BPO, and others.

Further Reading
These additional references are highly recommended reading:
 Oracle Fusion Applications Security Guide
 Oracle Fusion Applications Information Technology Management, Implement Applications Guide, for
information about Oracle Fusion Functional Setup Manager
 Oracle Fusion Applications Workforce Deployment Implementation Guide for information about setting up
Oracle Fusion Global HR, Global Payroll Interface, and using Oracle Fusion Fast Formula
 Oracle Fusion Business Process Models are available within Oracle Fusion Applications Help by selecting
Business Process Models in the Guides menu.
Note: The links provided here are to the Release 1 (11.1.4) version of the Oracle Fusion Technology Library. Use
the library appropriate to the release you are using.

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Oracle Fusion Human Capital Management: Copyright © 2012, Oracle and/or its affiliates. All rights reserved. This document is provided for information purposes only and the
International Human Resources contents hereof are subject to change without notice. This document is not warranted to be error-free, nor subject to any other
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