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Release 13 20C UK HR Setup
Release 13 20C UK HR Setup
Human Resources:
(UK)
HR Implementation and
Functional Considerations
WHITE PAPER / AUGUST 3, 2020
2 W HITE PAPER / Oracle Cloud Human Resources: (UK): HR Implementation and Functional Considerations
PURPOSE STATEMENT
This document provides an overview of features and enhancements included in release 13. It is intended
solely to help you assess the business benefits of upgrading and to plan your I.T. projects.
DISCLAIMER
This document in any form, software or printed matter, contains proprietary information that is the exclusive
property of Oracle. Your access to and use of this confidential material is subject to the terms and conditions
of your Oracle software license and service agreement, which has been executed and with which you agree
to comply. This document and information contained herein may not be disclosed, copied, reproduced or
distributed to anyone outside Oracle without prior written consent of Oracle. This document is not part of
your license agreement nor can it be incorporated into any contractual agreement with Oracle or its
subsidiaries or affiliates.
This document is for informational purposes only and is intended solely to assist you in planning for the
implementation and upgrade of the product features described. 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 in this document remains at the
sole discretion of Oracle.
Due to the nature of the product architecture, it may not be possible to safely include all features described
in this document without risking significant destabilization of the code.
Note: In the images or examples included in this document regarding: user details, company names,
addresses, emails, and/or telephone numbers represent a fictitious sample of data (based upon made
up data used in a demo environment). Any similarity to actual persons, living or dead, is purely
coincidental and not intended in any manner.
3 W HITE PAPER / Oracle Cloud Human Resources: (UK): HR Implementation and Functional Considerations
Table of Contents
Introduction ..................................................................................................7
Enterprise .................................................................................................................................... 8
Managing Geographies................................................................................................................ 8
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Legal Entity HCM Information for Legal Employers and Payroll
Statutory Units ........................................................................................................................... 21
Locations ................................................................................................................................... 31
Divisions .................................................................................................................................... 31
Departments .............................................................................................................................. 32
Addresses .................................................................................................................................. 35
Names ....................................................................................................................................... 36
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Additional Information for Payroll Interface ................................................39
Banks ......................................................................................................................................... 42
Element Entries..........................................................................................48
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INTRODUCTION
This paper identifies and describes HR setup tasks for Oracle Fusion Human Capital
Management for the UK.
» 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 document may also be beneficial to end users who run application processes after the
implementation.
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ORGANIZATION STRUCTURES
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.
1. Navigate to: Setup and Maintenance -> Manage Implementation Projects -> Create.
2. Select Workforce Deployment as the offering, since this parent project contains all the tasks needed
to set up HCM organizational structures:
Managing Geographies
Geography information is used in Oracle Fusion applications for address entry and geography-based
business processes, such as territory management and shipping. Through Manage Geographies task you
can define new, or manage existing, geography structures (such as country, state, city...), geography
hierarchies, and geography validations for a country.
Verifying Geographies
Before defining enterprise structures, the implementation team must verify predefined geographies and
load any additionally required local geographies.
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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:
– Structure Defined:
Note: Geography structure is used to define which geography types are part of the country structure, and
how the geography types are hierarchically related with in the country structure. In the above example four
geography types called County, Township, Locality and Postal Code have been created for UK. Then
these geography types have been ranked within the country, starting from the Region as the highest level
down to the Postal Code at the lowest level within the country structure.
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– Hierarchy Defined:
Note: Once the geography structure is defined, the geographies for each geography type can be added to
the hierarchy. The following geographies are valid examples of data for the previously defined geography
types:
– County : Avon
– Township: Bath
– Locality: Bath
As part of managing the geography hierarchy you can view, create, edit, and delete the geographies for
each geography type in the country structure. You can also add a primary and alternate name and code
for each geography. To edit a specific geography it must be evidenced in the tree, and then the Edit action
must be selected. You can then add your additional geography data, for example, a new locality in Bath:
– Validation Defined:
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Note: After defining the geography hierarchy, specify the geography validations for the country. You can
choose which address style formats you would like to use for the country, and for each selected address
style format you can map geography types to address attributes. You can also select which geography
types should be included in geography or tax validation, and which geography types will display in a list of
values during address entry in other user interfaces. Here, you can select the geography validation level
for the country, such as error or warning.
In the above example, the geography Locality is mapped to the attribute City and a List of Values has been
enabled for City. This will have impact on address creation process, so for example with the above set up
cities will be selectable from a drop-down list when creating an address.
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. More info on this topic can be found in the Oracle Fusion Workforce Deployment
Implementation Guide.
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Managing Payroll Product Usage
Before you use any localization, you must state how you will use that product. Each localization has one of
3 possible settings:
» None. This indicates that only the HR functionality of the localization will be used.
» Payroll Interface. This indicates that you will be using the HR functionality, and interfacing to a 3rd party
payroll via the inbuilt payroll interface
» Payroll. This indicates that you plan to use the full HR and payroll functionality for the chosen
localization.
Follow these steps to set your product usage:
1. Navigate to Define Common Applications Configuration for Human Capital Management -> Define
Feature by Country or Territory -> Features by Country or Territory-> Go to Task.
3. Click Edit and set the correct usage in the Selected Extensions.
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:
2. On the Manage Legal Jurisdictions page, select United Kingdom in the Territory field, and click
Search.
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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
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
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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.
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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.
1. Navigate to: Manage Legal Addresses in the implementation project task list.
3. On the Location Create page, enter the address information and Save your work.
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.
» Select the Tax Authority Type based on the type of interaction. Typically, this is set to Collecting
and Reporting.
» 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.
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.
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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.
To define an LDG:
1. Select Manage Legislative Data Groups in the implementation project task list.
3. On the Create Legislative Data Group page, provide the required information and save your work.
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LEGAL EMPLOYERS AND PAYROLL STATUTORY UNITS
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.
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LEGAL REPORTING UNITS AND TAX REPORTING UNITS
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 Global 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.
TRUs are especially relevant for the UK because the TRU holds the UK Employer’s PAYE scheme
number. The UK Employer’s PAYE Scheme 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.
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ORGANIZATION STRUCTURE MODELS SUPPORTED FOR THE UK
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.
LEmp LEmp
LEmp 10 LEmp 20 LEmp LEmp
30 31
40 41
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.
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1. Navigate to: Select Manage Legal Entity in the implementation project task list and click Select.
» 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 PAYE Scheme are required for registration with the predefined United
Kingdom HMRC jurisdiction.
» The Registration information fields Place of Registration, Legal Address and Legal Entity
Registration Number will appear as Legal Entity registration information under the Manage Legal
Entity Registrations task for this Legal Entity.
» A default LRU will be created for you with this PSU. It will have the same name and address as the
Legal Entity. The Registration Information field PAYE scheme will be used to register this default
TRU with the United Kingdom HMRC Jurisdiction. This is managed using the Manage Legal
Reporting Unit Registrations task.
» When you edit an existing Legal Entity using the Manage Legal Entity task, you will not be able to
view or edit the TRU registration information. You must use the task Manage Legal Reporting Unit
Registrations to do this.
4. Click Save and Close.
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1. To set the scope for this task, navigate to: Define Legal Entities for Human Capital
Management.
The Manage Registrations page displays a list of registrations for this legal entity:
Note: A registration was automatically created for the United Kingdom HMRC jurisdiction when the legal
entity was created, based on the registration details provided.
Legal Entity HCM Information for Legal Employers and Payroll Statutory Units
Additional information about legal entities is required for Oracle HCM processes.
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.
If the legal entity is also a PSU, click the Payroll Statutory Unit tab:
Note: The Fiscal Year Start for a UK customer should be April 6th of the year the enterprise is going live
on Oracle Fusion HCM. It is at the PSU level that we associate the legislative data group.
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2. Create a default card of the required calculation card type and set the appropriate effective date
4. Click on Taxes and add the Calculation Component and component details as seen below.
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P45 Action: The Employee’s calculation card, when created, will be created with the P45
Action specified here.
Do not issue: Do not issue a P45
Issue when final pay in previous period: Issue P45 based on the latest payroll
run before the termination date.
Note: This final payroll run must be in the tax year
Issue When final pay on or after termination: Issue P45 based on the payroll
which runs on or after the termination date.
Manual issue: P45 is produced and given to employee manually. In this case
Fusion will not produce a P45
Enable FPS to update tax code if payment after P45: If checked, the FPS process will
update the employee’s calculation card with the Tax Code and Tax Basis used in the PAYE
calculation. This FPS run is reporting the payroll run calculation which was the first payroll
run after the P45 was issued. The calculation card is updated as at the effective date of the
first payroll run after the P45 has been issued.
Enable automatic new starter creation: Although the Statutory Deduction calculation card
may be automatically created on hire, the new starter declaration will not be automatically
created. Select this checkbox for the new starter declaration to be created automatically.
Note: the new starter component must exist (either via automatic creation, or via
manual adding, or via HDL), before the Employee Self Service New starter
declaration can be used. Therefore we advise you enable automatic creation of new
starter component.
Irregular Employment Payment: The Employee’s Irregular Employment Payment indicator
is on the employee’s PAYE card component. The value here is defaulted to the PAYE
component for new hires. Where no value is entered or the component doesn’t exist it will
be left null on employee’s component during New Hire.
Enable automatic PAYE tax code updates: Check this to allow update of the PAYE
component Tax Code when the employee completes an employee Self Service New
Starter declaration.
If no P45 has been provided, the Tax Code and Tax Basis will be automatically updated:
- Declaration A: default tax code and Cumulative Tax Basis
- Declaration B: default tax code and Non-cumulative Tax Basis
- Declaration C: BR Tax Code, and Cumulative Tax Basis
If a P45 has been provided, the Tax Code and Tax Basis as shown on the P45 should be
manually entered on the PAYE component, the PAYE component will not be updated in
this case.
Enable automatic Student Loan updates: Check this to allow creation of the Court Orders
and Student Loan Card, and a Student Loan component, when the employee completes
the relevant section in an employee Self Service New Starter declaration.
Enable automatic Post Graduate Loan: Check this to allow creation of the Court Orders and
Student Loan Card, and a Post Graduate Loan component, when the employee completes
the relevant section in an employee Self Service New Starter declaration.
6. Click on National Insurance and add the Calculation Component and component details as seen
below. Expand the National Insurance Component Details:
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These defaults are available:
Default SCON: This is disused, and is present only for historic purposes.
Disable automatic card creation. By default, a new hire will automatically create a
Statutory Deductions card, with NI and PAYE components. Check this check box
to disable this functionality.
7. Click Save.
For information on Pensions Automatic Enrolment card and Pensions Automatic Enrolment Additional
Information, see Oracle Fusion HCM (UK): Pensions Automatic Enrolment Functional and Implementation
Considerations on My Oracle Support (MOS). Document ID 2006584.1
For more information on the Involuntary Deductions card, see Oracle Fusion HCM (UK): Court Orders and
Student Loans Functional and Implementation Considerations on My Oracle Support (MOS). Document ID
2009287.1.
1. To set the scope for this task, select Manage Legal Reporting Unit in the task list:
2. On the Scope Selection window, select Create New and click Apply and go to Task.
An LRU with the same name as the previously created legal entity has been created by default:
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The LRU is designated as the main legal reporting unit for the legal entity:
3. To create a second LRU for this legal entity, enter the required information on the Create Legal
Reporting Unit page:
4. You must provide the PAYE Scheme. The PAYE Scheme must be in the specified format, for
example, CCC/12345. You must enter a forward slash character to separate the two
components of the PAYE scheme
Note: When performing a global transfer of an employee from another legislation to a UK legislation,
ensure that the Jurisdiction entered is UK TRU is registered with ‘United Kingdom HMRC’ a, as above, if
the employee is to be successfully transferred into the TRU.
5. Click Save and Close.
Additional HCM information is required for a UK TRU. You must first set the default behavior for TRU
calculation cards as described in the following section.
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1. Navigate to Manage Legal Reporting Unit Calculation Cards
2. Follow the steps described in the section Legal Entity calculation cards to set the default values.
1. Select Manage Common Lookups from the implementation project task list.
2. Click Create.
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.
Points to Consider:
• 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 calculation card
UI.
• Leave the Tag field blank.
6. Click Save and Close.
Lookup codes in this lookup type will be hidden from the user, but the Meaning will be displayed in the
calculation card UI and the EOY archive and reports. Meaning will also be validated in EOY processing as
per HMRC specification.
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 calculation
card for an employee, they can select a unique ID from the unique ID list defined for the TRU associated
with the calculation card.
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Note: Once the TRU with the Unique ID lookup type and lookup codes is in use, the name of the lookup
type on the TRU must never be edited or modified.
1. To set the scope for this task, select 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 Legal Reporting Unit HCM Information page, select the Tax Reporting Unit.
• ECON (Employer Contracted Out Number): Identifier given by the UK authorities to an employer
that contracts out of the state pension scheme. Note: From April 2016 this is only required for
historic reporting and data integrity.
• 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.
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• 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 calculation card with a TRU, they can pick a unique ID
from this list. (See Calculation Cards later in this document for more information about selecting
a unique ID on the calculation card.)
If data is migrated from a legacy system, these UK-specific fields will need to be populated. The following
table displays the attributes of these flexfields, which are held in the record
PER_ORGANIZATION_INFORMATION_EFF:
• Employer Accounts Office Reference Number: This is a Unique identifier issued to the
employer by the HMRC Accounts Office and will be present on all RTI message files relating to
payments due or made.
• Service Company: This indicates a company that operates Intermediaries legislation,
sometimes known as IR35.
• Corporation Tax Reference: This is a unique identifier issued by HMRC to the employer who
pays income tax
• Self-Assessment Unique Identifier: This is a unique identifier issued by HMRC to anyone who
needs to submit self-assessment for taxation, for organizations that are sole proprietors or
partnerships.
• Employment Allowance Indicator: Posted to the Employment Allowance Indicator in the EPS
file.
• Account Holder Name: Posted to the Account Holder Name field in the EPS file.
• Branch sort code: Posted to the Branch sort code field in the EPS file.
• Account Number: Posted to the Account Number field in the EPS file.
• Building Society Reference: Posted to the Building Society Reference field in the EPS file.
• Late PAYE Reporting Reason: Posted to the Late PAYE Reporting Reason field in the FPS
file.
• DEO Employer Reference: This is used in the court Order reports for CMS DEO and DEA.
• Exclude from apprenticeship Levy: If selected, the NI Earnings of any employee who reports
to this TRU will be excluded from the Apprenticeship Levy calculation.
• Apprenticeship Levy Apportioned Allowance: There is an allowance for apprenticeship levy.
However, where there are multiple TRUs, this field is used to apportion the allowance between
the various TRUs.
• Apprenticeship Levy Employers Pay Bill YTD: If a customer migrates to Oracle Fusion HCM
during the tax year, use this field to hold the Year to Date value of the Employer’s Pay Bill to
include it for reporting.
• Apprenticeship Levy Employers Pay Bill Date: Use this date to identify which tax year the
Apprenticeship Levy Employees Pay Bill YTD relates to. This is only expected to be used in the
tax year that the migration to Fusion takes place.
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• Agricultural sector: Used by the EPS process to classify the employer.
• Industrial sector: Used by the EPS process to classify the employer.
• Fisheries sector: Used by the EPS process to classify the employer.
• Road Transport sector: Used by the EPS process to classify the employer.
• State Aid rules do not apply: Used by the EPS process to classify the employer.
UK TRU RTI Information
• Sender ID: Used in HMRC data transfers.
• Authentication Value: Used in HMRC data transfers.
• P6 Highest Index Retrieved: The respective GOT number.
• P9 Highest Index Retrieved: The respective GOT number.
• SL1 Highest Index Retrieved: The respective GOT number.
• SL2 Highest Index Retrieved: The respective GOT number.
• RTI Highest Index Retrieved: The respective GOT number.
• PGL1 Highest Index Retrieved: The respective GOT number.
• PGL2 Highest Index Retrieved: The respective GOT number.
Business Units
Oracle Fusion HCM 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.
1. Select Define Business Units for Human Capital Management in the implementation project task
list.
2. Click Create.
Note: You must have previously created the location and default set. (Default sets are created
using the Manage Reference Data Sets task.
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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.
2. Click Create.
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:
2. Click Create.
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 HCM (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.
31 W HITE PAPER / Oracle Cloud Human Resources: (UK): HR Implementation and Functional Considerations
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:
2. Click Create.
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.
2. Click Create.
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:
32 W HITE PAPER / Oracle Cloud Human Resources: (UK): HR Implementation and Functional Considerations
4. Select Tax Reporting Unit in the Classification field and click Search. Then click Select
Organization for the TRU you want to work with.
6. Click Next to provide additional details, and then review and submit.
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.
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:
33 W HITE PAPER / Oracle Cloud Human Resources: (UK): HR Implementation and Functional Considerations
3. To create a new action reason for an action, click Create in the Actions Reasons section and
complete the required fields.
4. The new reason code will be available for selection when a user performs the specified action.
» Positions
» Jobs
» Grades
» Departments
» Locations
34 W HITE PAPER / Oracle Cloud Human Resources: (UK): HR Implementation and Functional Considerations
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
5. ANA NAA
6. AANA NAA
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.
35 W HITE PAPER / Oracle Cloud Human Resources: (UK): HR Implementation and Functional Considerations
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.
ADDRESS MAPPING
If you are uploading the data through HCM Data Loader (HDL) or File Base Loader (FBL), then map the
address fields as follows:
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
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.
• NINO Verified: Used by the NVREP process flagging that the NINO is verified.
• Verified Date: Used by the NVREP process showing the date the NINO was verified.
36 W HITE PAPER / Oracle Cloud Human Resources: (UK): HR Implementation and Functional Considerations
• Response Status Returned: The status returned by the NVREP process.
• Sexual Orientation
• Gender Identity
• Off-payroll worker subject to 2020 rules. Indicates if this person is a Deemed Employee as
defined by HMRC.
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
» If character 9 is present then it must be either A or B or C or D or Space.
37 W HITE PAPER / Oracle Cloud Human Resources: (UK): HR Implementation and Functional Considerations
EMPLOYMENT INTERMEDIARIES DATA CAPTURE
To support the reporting of employees who are employed through intermediaries, you can now
capture additional data such as employment agencies or other third parties.
1. Use the Manage Employment task to enter the Worker Engagement Details field in the Job
Details section.
2. Select one of the following values for this field:
• Another party operated PAYE on the worker’s payments
• Limited company
• Limited liability partnership
• Non-UK engagement
• Partnership
• Self-employed contractor
3. You can enter the value for the Worker Unique Taxpayer Reference field in the In the Manage
Person page. Click Edit for the United Kingdom Legislative Information -> More Details.
Note: Enter a 10-digit value for the Unique Taxpayer Reference field that is issued to an individual
by HMRC.
38 W HITE PAPER / Oracle Cloud Human Resources: (UK): HR Implementation and Functional Considerations
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 HCM (UK) Payroll, additional information
must be provided to support payroll processes. Setup tasks for Oracle Fusion Payroll are outside the
scope of this guide.
Note: To setup the United Kingdom territory information, see the section Managing Payroll Product
Usage.
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:
To set up mapping between pay status and assignment status, perform the following steps:
39 W HITE PAPER / Oracle Cloud Human Resources: (UK): HR Implementation and Functional Considerations
40 W HITE PAPER / Oracle Cloud Human Resources: (UK): HR Implementation and Functional Considerations
STATUTORY DEDUCTIONS CALCULATION CARD
A Statutory Deductions calculation card captures values required for calculating and processing payroll
deductions. To support the Payroll Interface, you must create a Statutory Deductions calculation card for
each person for whom payroll deductions will be processed.
For more information, see the Oracle Fusion HRMS (United Kingdom): Payroll Implementation and
Functional Considerations (Doc ID 1921464.1).
41 W HITE PAPER / Oracle Cloud Human Resources: (UK): HR Implementation and Functional Considerations
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.
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.
Bank Branches
To define branches for the banks you created:
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.
Note: To use this bank account for processing payments related to payroll, select the Payroll option in the
Account Use field. If you want to use a building society account, you must enter it when first saving the
bank account record. If a bank account record is saved without a Building Society Roll Number, the
account is considered to be a normal bank account, and not a building society account.
42 W HITE PAPER / Oracle Cloud Human Resources: (UK): HR Implementation and Functional Considerations
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.
2. Select the legislative data group associated with this payment method.
3. 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).
You can configure BACS for single-file, single-day format or multi-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.
4. On the Create Payment Source page, enter a Name and select a Bank Account Name:
1. In the Electronic Funds Transfer File Information section, enter the Bureau Name, Bureau
Reference Transaction Limit, and BACS File Limit:
3. On the Create Payment Source page, enter a Name and select a Bank Account Name:
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:
43 W HITE PAPER / Oracle Cloud Human Resources: (UK): HR Implementation and Functional Considerations
3. Click the Total Pay balance in the Search Results to view the balance information.
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.
44 W HITE PAPER / Oracle Cloud Human Resources: (UK): HR Implementation and Functional Considerations
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.
1. Sign in to the application with a role that has implementation privileges, such as
APPL_IMP_CONSULTANT.
3. Enter a name and select a legislative data group. Description is optional, but useful to provide.
4. Click Save.
45 W HITE PAPER / Oracle Cloud Human Resources: (UK): HR Implementation and Functional Considerations
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.
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.
3. You must select an existing consolidation group. 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.
4. Click Next, and provide the required information on the Payroll Offsets page.
46 W HITE PAPER / Oracle Cloud Human Resources: (UK): HR Implementation and Functional Considerations
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.
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:
2. On the Create Element window, select a legislative data group and a primary classification, then
click Continue.
3. Complete the fields at the top of the Create Element page, and then answer the questions.
5. Verify the information and click Submit to create the new element.
6. 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. On the Element Eligibility page, enter a name in the Element Eligibility Name field and click
Submit.
Note: By entering only a name and no eligibility criteria, the element is eligible for all employees.
9. Click an Input Value in the left panel to provide additional information as needed:
10. 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.
47 W HITE PAPER / Oracle Cloud Human Resources: (UK): HR Implementation and Functional Considerations
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 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.
48 W HITE PAPER / Oracle Cloud Human Resources: (UK): HR Implementation and Functional Considerations
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White Paper Oracle Cloud Human Resources: (UK): HR Implementation and Functional
Considerations
August 2020
Author: Henry Winsor
Contributing Authors: [OPTIONAL]