You are on page 1of 101

Oracle Fusion HCM (United Kingdom):

HR Implementation and Functional Considerations


ORACLE WHITE PAPER | AUGUST 2017
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 Oracles products
remains at the sole discretion of Oracle.
Contents

Disclaimer 1

Introduction 5

Other Information Sources 5

Document Updates 6

Organization Structures 7

Enterprise 7

Creating an Implementation Project 7

Managing Geographies 9

Verifying Geographies 9

Loading Geography Structures and Geography Data 12

Managing Payroll Product Usage 13

Defining Enterprise Structures 14

Legal Jurisdictions 14

Legal Addresses 17

Legal Authorities 17

Legislative Data Groups 18

Legal Entities 19

Legal Employers and Payroll Statutory Units (PSUs): Overview 19

Legal Reporting Units and Tax Reporting Units: Overview 20

Organization Structure Models Supported by the UK Localization 20

Creating Legal Entities 21

Legal Entity Registrations 24

Legal Entity HCM Information for Legal Employers and Payroll Statutory Units 25

1
Legal Entity Calculation Cards 26

Legal Reporting Units 29

Setting Default Behaviour for TRU Calculation cards 31

Unique ID Lists for Year-End Reporting 32

Legal Reporting Unit HCM Information 34

Business Units 36

Workforce Structures 38

Locations 38

Divisions 39

Departments 40

Reporting Establishments 41

Roles in Organization 43

Grades 43

Jobs 44

Positions 46

Actions Reasons 47

Managing Workforce Structures 49

Personal Data Setup 51

Addresses 51

Address Validation 51

Address Mapping 52

Names 52

Legislative Information 53

National Identifiers 54

2
Hiring a Worker 55

Maintaining Person and Employment Information 59

Person Management 59

Employment Management 61

Employment Intermediaries Data Capture 63

Terminating a Worker 65

Additional Information for Payroll Interface 66

Payroll Processing after Termination 67

Statutory Deductions Calculation Cards 67

Creating the Card 67

Adding Calculation Cards for PAYE and NI 69

Creating Associations 70

Calculation Card Flexfields 71

Banking Setup 72

Banks 72

Bank Branches 73

Bank Accounts 73

Organization Payment Methods 74

Configuring for BACS 76

Net Pay Balance 78

Consolidation Groups and Payroll Definitions 81

Consolidation Groups 81

Payroll Definitions 81

Person Payment Information 84

3
Assigning a Payroll to the Employee 84

Assigning Payment Methods to the Employee 85

Elements and Compensation 87

Elements and Element Templates 87

Element Entries 91

Salary Basis and Compensation 91

Salary Basis 91

Individual Compensation 93

Assigning Salary Basis and Compensation to a Payee 94

4
Introduction
This paper identifies and describes HR setup tasks for Oracle Fusion Human Capital Management for the UK.

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 document can also be beneficial to end users who run application processes after the 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

5
Document Updates
This document is based on the most current application release as of the documents 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.

6
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.

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:

2. Select Setup and Maintenance from the Navigator:

7 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


3. On the Implementation Projects tab, click Create:

4. On the Create Implementation Project page, enter the required information and click Next:

5. Select Workforce Deployment as the offering, since this parent project contains all the tasks needed to set up
HCM organizational structures:

8 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


6. Click Save and Open Project.

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.

Follow these steps to verify predefined geographies:


1. Select Manage Geographies in the implementation project checklist:

2. On the Manage Geographies page, select GB and click Search to view the predefined United Kingdom
geography setup and content:

9 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


3. Click the green checkmark for each type of geography data you want to verify:
Address Cleansing Defined:

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.

Hierarchy Defined:

10 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


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

Postal code: BA1 1

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:

11 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


Note: After defining the geography hierarchy, you need to 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. The geography validation level for the country, such as error or warning, can also be selected.

In the above example the geography Locality has been 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:

http://docs.oracle.com/cd/E28271_01/fusionapps.1111/e20379/toc.htm

Loading Geography Structures and Geography Data


Geography structures and geography data can be loaded via batch processes. There is a sample csv file
GeoPlanet GB geographies.csv which contains sample data for upload into the geographies tables.

Note: Sample geography files for several countries can be found in the following Knowledge Document:

12 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


https://support.us.oracle.com/oip/faces/secure/km/DocumentDisplay.jspx?id=1341174.1

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. Select Manage Payroll Product Usage in the implementation project checklist:

2. On the Manage Payroll Product Usage page, search for United Kingdom in the search box to locate the correct
row:

3. Edit the Selected Payroll Product list of values to set the correct usage.

13 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


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:

2. On the Manage Legal Jurisdictions page, select United Kingdom in the Territory field, and click Search.

14 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


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 LEGISLATIVE_CATEGORY HRX_GB_HMRC The value HMRC is predefined in


Category
lookup type
LEGISLATIVE_CATEGORY.

Identifying IDENTIFYING No Indicates that registrations under this


jurisdiction are not created
automatically.

Legal Entity LEGAL_ENTITY_REGISTRATION RN Indicates that the legal entity registration


Registration Code
_CODE number is used to uniquely identify legal
entities to the legal authority.

Legal Reporting LEGAL_REPORTING_UNIT_REG HRX_GB_PAYE_R Indicates that the employers PAYE


Unit Registration
Code ISTRATION_CODE EF Scheme is used to uniquely identify
legal reporting units to the legal
authority. The value PAYE Scheme is

15 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


TABLE 1. XLE_JURISDICTIONS_B

Name Column Values Comments

predefined for the UK in lookup type


XLE_REG_CODE_EST.

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.

16 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


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.

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:

17 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


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.
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:

18 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


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:

Legal Entities
A legal entity is an entity unequivocally identified and given rights and responsibilities under Commercial Law,
through registration with the territorys 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 HCM 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.

19 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


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 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 Employers PAYE scheme number. The UK
Employers PAYE Scheme is mapped to the Employer Registration Number on the TRU registration. Similarly, the
employers 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.

20 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


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

Creating Legal Entities


To define legal entities:

1. Select Manage Legal Entity in the implementation project task list and click Select

2. Select Create New and click Apply and Go to Task.

21 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


3. On the search results screen, click the Create icon.

4. Complete the Legal Entity information page:

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.

22 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


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.
5. Click Save and Close.

23 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


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. To set the scope for this task, select Define Legal Entities for Human Capital Management in the
implementation project task list:

2. On the Scope Selection window, click Select and Add:

3. Search for and select the legal entity you just created, and then click Save and Close.
4. Select Manage Legal Entity Registrations in the task list.

The Manage Registrations page displays a list of registrations for this legal entity:

24 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


Note: A registration was automatically created for the United Kingdom HMRC jurisdiction when the legal entity was
created, based on the registration details provided.

5. Click Create to add a registration:

6. 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.
7. Click Save and Close.

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:

25 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


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 HCM. 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 Entity Calculation Cards


You can configure default settings at the legal employer level that are used in subsequent processes. Even though
you may create default settings here, depending upon the functionality, you may also create default settings at the
TRU-level, which would override the default values at legal employer level.

To set the default values for legal entity calculation cards:

1. Click on the Manage Legal Entity Calculation Cards task:

26 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


2. Create a default card of the required calculation card type and set the appropriate effective date:

3. Click Continue.

4. For the Statutory Deduction Card, following options are available:


Note: On hire, the application creates a Statutory Deductions calculation card for the newly hired employee by
default. The values specified here can be overridden at the TRU-level.

27 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


National Insurance:

Default NI Category: The calculation card will be created with the NI Category specified here.
Default Pension Basis: The calculation card will be created with the NI Category specified here.
Default SCON: This field is present only for historic purposes.
Disable Automatic Card Creation: If you do not want the card to be created, select this checkbox.

Taxes:

28 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


P45 Action: The calculation card will be created with the P45 Action specified here.
Enable automatic new starter creation: Although the calculation card will be created, the new starter
declaration will not be automatically created. Select this checkbox for the new starter declaration to be
created.
5. 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). ,
Oracle Fusion HCM (United Kingdom): Pensions Automatic Enrolment and Functional Considerations [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). <Oracle Fusion HRMS (UK):
Court Orders and Student Loans Implementation and Functional Considerations [2009287.1]

Legal Reporting Units


To create an LRU (or a TRU, as it is referred to in HCM):

1. To set the scope for this task, select Manage Legal Reporting Unit in the task list:

29 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


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:

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:

30 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


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.

Setting Default Behaviour for TRU Calculation cards


You can create defaults for various calculation cards at the Legal Employer level. You can also specify values at the
TRU level. The TRU level values will override the Legal Employer level defaults.

To set the default values for TRU calculation cards:

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.

31 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


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 TRUs 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 persons statutory calculations card with a 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 persons deduction information (P14). This also ensures that all P14s for a calculation card are reported
in the same submission.

No unique ID lookup types are predefined for the UK.

Note: From Release 9, this field is used for the EAS process and hence is not mandatory.

To create a lookup type for a unique ID list:

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:

32 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


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 calculation card UI.
Leave the Tag field blank.
5. Click Save and Close.

Note: 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.

33 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


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.

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. 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 and click Next:

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

34 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


5. 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. 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.
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.

35 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


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.
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 levey. However,
where there are multiple TRUs, this field is used to apportion the allowance between the various TRUs.
Apprenticeship Levy Employees 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 Employers Pay Bill to include it for reporting.
Apprenticeship Levy Employer 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.

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.

To create a business unit:

1. Select Define Business Units for Human Capital Management in the implementation project task list:

36 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


2. Click Create.

3. On the Create Business Unit page, provide the required information:

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).

4. Click Save and Close.

37 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


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.

3. On the Create Location page, provide the required information and click Submit:

38 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


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:

39 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


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 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.

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:

40 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


1. Select Manage Departments in the implementation project task list:

2. Click Create.

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:

41 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


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:

42 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


4. Select Tax Reporting Unit in the Classification field and click Search. Then click Select Organization for
the TRU you want to work with.

5. In the Reporting Establishment Description section, provide the required information:

6. 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.

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:

43 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


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:

Note: Grade rates can be used to define pay values for grades in a legislative data group (country).

6. You can add a rate that was previously defined or create a new rate:

Jobs

44 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


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.

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:

45 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


Note: No UK-specific data is required or captured in the Job Details page or other setup pages for jobs.

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:

46 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


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.

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.

To view and manage action reasons:

47 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


1. Select Manage Actions in the implementation project task list:

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:

48 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


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.

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:

49 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


When you select Workforce Structures in the Navigator, the following page is displayed:

Use this work area to manage:

Positions
Jobs
Grades
Departments
Locations
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:

50 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


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

51 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


6. AANA NAA

7. GIR 0AA (historic code)

In the postcode format, A is Alpha and 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.

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:

UI Name Table Column name (PER_ADDRESSES_F)


Address Line 1
ADDRESS_LINE1
Address Line 2
ADDRESS_LINE2
Address Line 3
ADDRESS_LINE3
City or Town
TOWN_OR_CITY
County
REGION_1
Postcode
POSTAL_CODE

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

52 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


The following figure shows how a UK name is captured in the application:

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

53 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


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
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:

54 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


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:

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

55 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


The other supported person types for the UK are:

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.
4. On the Person Information page, provide the required information:

56 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


Note the following:

57 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


An address is required and must conform to the predefined UK Address format.
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.

58 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


If you specify a TRU, that TRU will be used to automatically associate the Statutory Deductions card to that
TRU. If that is done, then the PAYE and NI components will also be automatically associated to the
assignments associated to the new hire.

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:

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.

59 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


Person Information:

Contacts:

60 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


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.

Employment Management
The Person Management work area also provides tasks for maintaining employment information.

61 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


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:

62 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


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.

This data capture consists of two new fields:

- Worker Engagement Details


- Worker Unique Taxpayer Reference

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 workers 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:

63 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


4. Click View More Details:

Note: Enter a 10-digit value for the Unique Taxpayer Reference field that is issued to an individual by HMRC.

64 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


Terminating a Worker
When a persons 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:

3. On the Terminate Work Relationship page, enter the details of the termination, including the termination reason:

65 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


Note: The Termination Reason field displays a list of Action Reasons associated with the termination action, as
described earlier in this guide.

If you load the termination data using HDL, then a P45 will not be produced for this person, as HDL does not trigger
the P45 process. The P45 process uses the event model to detect terminations for later process. However, for
performance reasons, the HDL does not invoke the event model functionality. Consequently, you must only
terminate through the user interface where you are required to produce P45s.

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.

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:
Statutory Deductions Calculation Cards
Consolidation Groups
Payroll Definitions
Organizational Payment Methods
Personal Payment Method
Elements and Gross Compensation

66 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


Payroll Processing after Termination

If Payroll is being used, or, if Payroll Interface will be used to feed an external payroll system, it is necessary to
specify for which assignment statuses payroll should be processed. This is especially relevant after termination.

To set up mapping between pay status and assignment status, perform the following steps:

1. Select the Manage Assignment Status task:

2. Define the mapping between Assignment Status and Pay status:

Statutory Deductions Calculation Cards


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.

Creating the Card


To create a personal calculation card:

1. Sign in using a role that has privileges to manage payroll information:

67 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


2. Select Person Management from the Navigator:

3. Search for and select the employee for whom you want to create the card.

4. Select the Manage Payroll Calculation Information 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):

68 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


Adding Calculation Cards for PAYE and NI
To add the required information for processing NI and PAYE deductions:

1. In the Calculation Card 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.

4. In the Calculation Card Overview section, click Taxes:

69 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


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. The Reference for the PAYE component is the HMRC Payroll ID. This is the unique identifier that you use
to identify this employment relationship with HMRC and id used in RTI reporting. It is generated
automatically and cannot be edited.

6. In the Calculation Component Details section, provide the required information.

Note: You must enter a valid Tax Code and Tax Basis. All other fields are optional.

Creating Associations
You must associate the calculation 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 Calculation 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).

70 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


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 Assignment Number and the Calculation
Component, then click OK.

Note: If the employer uses a 3-tier model, you will select an Employment Number rather than an Employment 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 calculation card.

Calculation Card Flexfields


Refer to the .xls document that accompanies this white paper for a complete list of predefined calculation card
flexfields for the UK.

71 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


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.

2. Select Manage Banks in the implementation project task list:

3. Click Create.

4. On the Create Bank page, provide the required information:

72 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


Bank Branches
To define branches for the banks you created:

1. Select Manage Bank Branches in the implementation project task list:

2. Click Create.

3. On the Create Bank Branch page, provide the required information:

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:

73 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


2. Click Create.

3. On the Create Bank Branch page, provide the required information:

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.

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.

To define organization payment methods:

1. Select Manage Organization Payment Methods in the implementation project task list:

74 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


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):

75 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


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:

76 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


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.

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:

77 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


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.

To view the Total Pay balance:

1. Select Manage Balance Definitions in the Payroll Calculations or Setup and Maintenance work areas.

78 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


2. Enter Total Pay in the Name field and select a UK LDG, then click Search:

3. Click the Total Pay balance in the Search Results to view the balance information:

79 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


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.

80 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


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.

81 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


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:

5. 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

82 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


valid for this payroll. You can select any organization payment method defined for the LDG that is linked to
this payroll definition.

6. 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.

83 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


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:

84 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


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:

85 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


4. On the Personal Payment Method page, select the Organization Payment Method for this employee:

5. If the payment type is EFT, you must add a bank account and provide banking details:

An employee can have multiple payment methods. Use the Payment Amount Type and Percentage
fields to manage distribution across different payment methods.

86 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


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:

87 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


4. Complete the fields at the top of the Create Element page, and then answer the questions:

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:

88 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


6. Verify the information and click Submit to create the new element:

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.

89 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


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:

90 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


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
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:

91 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


4. On the Create Salary Basis page, select the payment element to use for the salary basis and provide the
required information:

92 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


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:

4. Select the Eligibility tab to define eligibility for the plan:

93 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


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.

Adding Salary

1. Select Manage Salary in the Person Management work area:

94 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


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:

95 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


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:

96 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


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:

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.

97 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION


98 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION
Oracle Corporation, World Headquarters Worldwide Inquiries
500 Oracle Parkway Phone: +1.650.506.7000
Redwood Shores, CA 94065, USA Fax: +1.650.506.7200

CONNECT W ITH US

blogs.oracle.com/oracle
Copyright 2015, Oracle and/or its affiliates. All rights reserved. This document is provided for information purposes only, and the
contents hereof are subject to change without notice. This document is not warranted to be error-free, nor subject to any other
facebook.com/oracle warranties or conditions, whether expressed orally or implied in law, including implied warranties and conditions of merchantability or
fitness for a particular purpose. We specifically disclaim any liability with respect to this document, and no contractual obligations are
twitter.com/oracle formed either directly or indirectly by this document. This document may not be reproduced or transmitted in any form or by any means,
electronic or mechanical, for any purpose, without our prior written permission.
oracle.com Oracle and Java are registered trademarks of Oracle and/or its affiliates. Other names may be trademarks of their respective owners.

Intel and Intel Xeon are trademarks or registered trademarks of Intel Corporation. All SPARC trademarks are used under and are
trademarks or registered trademarks of SPARC International, Inc. AMD, Opteron, the AMD logo, and the AMD Opteron logo are
trademarks or registered trademarks of Advanced Micro Devices. UNIX is a registered trademark of The Open Group. 0615

White Paper Title


August 2017
Author: Henry Winsor
Contributing Authors: [OPTIONAL]

99 | ORACLE FUSION HCM (UK): HR IMPLEMENTATION AND FUNCTIONAL CONSIDERATION

You might also like