Professional Documents
Culture Documents
Disclaimer 1
Introduction 5
Document Updates 6
Organization Structures 7
Enterprise 7
Managing Geographies 9
Verifying Geographies 9
Legal Jurisdictions 14
Legal Addresses 17
Legal Authorities 17
Legal Entities 19
Legal Entity HCM Information for Legal Employers and Payroll Statutory Units 25
1
Legal Entity Calculation Cards 26
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
Addresses 51
Address Validation 51
Address Mapping 52
Names 52
Legislative Information 53
National Identifiers 54
2
Hiring a Worker 55
Person Management 59
Employment Management 61
Terminating a Worker 65
Creating Associations 70
Banking Setup 72
Banks 72
Bank Branches 73
Bank Accounts 73
Consolidation Groups 81
Payroll Definitions 81
3
Assigning a Payroll to the Employee 84
Element Entries 91
Salary Basis 91
Individual Compensation 93
4
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 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.
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.
Your comments are important to us. We encourage feedback about Oracle Fusion Applications Help and guides.
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.
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:
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.
2. On the Manage Geographies page, select GB and click Search to view the predefined United Kingdom
geography setup and content:
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:
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:
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
Note: Sample geography files for several countries can be found in the following Knowledge Document:
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:
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.
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.
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 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.
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.
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.
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 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.
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.
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.
LEmp LEmp
LEmp 10 LEmp 20 LEmp LEmp
30 31
40 41
1. 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.
1. To set the scope for this task, select Define Legal Entities for Human Capital Management in the
implementation project task list:
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:
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:
4. 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.
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.
3. Click Continue.
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:
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]
1. To set the scope for this task, select Manage Legal Reporting Unit in the task list:
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:
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.
2. Follow the steps described in the section Legal Entity calculation cards to set the default values.
Note: From Release 9, this field is used for the EAS process and hence is not mandatory.
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:
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.
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:
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.
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:
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).
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:
To create divisions:
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:
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.
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:
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:
2. Click Create.
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
To create jobs:
2. Click Create.
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.
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:
2. Click Create.
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.
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:
The new reason code will be available for selection when a user performs the specified action.
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:
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
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:
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.
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:
The new hire process is the first task in the workforce lifecycle.
To hire an employee:
Contingent Worker
Non Worker
Pending Worker
3. On the Identification page, provide the required information:
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.
Person Management
To maintain person information:
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.
Contacts:
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.
In the following screen, Reporting Establishment is added to an existing employment instance for the employee:
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:
Note: Enter a 10-digit value for the Unique Taxpayer Reference field that is issued to an individual by HMRC.
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:
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.
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
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:
3. Search for and select the employee for whom you want to create the card.
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):
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.
You can create additional NI components, one for each NI category applicable to this payroll relationship.
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.
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:
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).
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.
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.
3. Click Create.
2. Click Create.
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.
No organization payment methods are predefined for the UK. Implementation teams will need to create the ones
applicable to the enterprise.
1. Select Manage Organization Payment Methods in the implementation project task list:
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):
1. In the Electronic Funds Transfer File Information section, leave Bureau Name and Bureau Reference
blank:
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.
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.
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.
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.
Before you can create a payroll definition, you must have already defined a legislative data group and consolidation
group.
2. Click Create.
3. Select the LDG for this payroll definition, and click Continue:
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
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.
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).
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:
4. On the Manage Person Details page, add the payroll in the Payroll Details section:
1. Select the Manage Personal Payment Methods task in the Payroll Distribution work area:
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.
Elements may also be used in the process of calculating gross compensation for the Payroll Interface.
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:
3. On the Create Element window, select a legislative data group and a primary classification, then click
Continue:
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.
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).
9. On the Element Eligibility page, enter a name in the Element Eligibility Name field and click Submit.
10. Click an Input Value in the left panel to provide additional information as needed:
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
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.
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:
6. Select the Instruction Text tab and add any user instructions you want to associate with the plan.
Adding Salary
3. On the Manage Salary page, select the previously created Salary Basis and enter a Salary Amount,
such as 2000 GBP per month:
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
When you save this record, an element entry with the specified start and end dates is automatically generated. You
can view the entry on the Manage Elements page:
The compensation element entry is passed to the Gross Compensation calculation process, which prepares
compensation data for the Payroll Interface.
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