Organization Structures

Organization Management

Key Concepts for Representing Enterprises

You represent your enterprise using key organization structures in Oracle HRMS. These structures provide the framework so you can perform legal reporting, financial control, and management reporting. You can set up these organization structures yourself, or use the Configuration Workbench.

The Configuration Workbench delivers an integrated configuration management toolset for HR systems and assists in the evaluation, configuration, deployment, and maintenance of HR applications. The workbench suggests a basic structure of organizations for your enterprise based on configuration models.

See: Configuration Models for Your Enterprise Framework, Oracle HRMS Enterprise and Workforce Management Guide

Once the basic enterprise structure is set up, you add the additional organizations and locations t`hat exist in your enterprise. You define the internal organizations that represent your internal divisions and departments, and you define the external organizations that represent the organizations outside of your enterprise. For example, you can set up an external organization to represent the tax office for which your enterprise uses for reporting purposes.

You can use organizations to represent many levels of your enterprise, from the highest level of organization that represents the whole enterprise, to the lowest level of organization that represents a section or department.

See: Extending the Enterprise Framework

See: Organization Classifications

See: Setting Up Organizations, Oracle HRMS Enterprise and Workforce Management Guide

Business Group

The business group represents a country in which your enterprise operates. You create it as an organization in Oracle HRMS, but it does not represent a specific organization within your enterprise structure, and you do not include it in your organization hierarchies. A business group enables you to group and manage data in accordance with the rules and reporting requirements of each country, and to control access to data.

The critical factors for deciding when to use a separate business group, or an international business group, are based on the following factors:

• If you use Oracle Payroll

• The number of people you employ in a country

• If you require legislative support for Oracle HR

Generally the laws are so different in each country that to be compliant, there must be a different business group for each country in which an enterprise has employees.

Operating Company

An operating company represents a division or line of business within your enterprise that is legally registered for reporting in at least one country. An operating company is a holding company, a company within a company.

Ultimate Legal Entity

The ultimate legal entity represents the enterprise, and typically, the enterprise is the highest (global) level of a business organization. The ultimate legal entity is the parent company or organization for all its subsidiaries and divisions. Oracle HRMS represents the ultimate legal entity with the GRE/Legal Entity organization classification.

Legal Entity/Employer

A legal entity represents the designated legal employer for all employment-related activities. The legal authorities in a country recognize this organization as a separate employer. In an organization hierarchy, a legal entity may report to an operating company or to the ultimate legal entity.

A legal employer is a legal entity that is responsible for employing people in a particular country. Therefore, if you employ people in a country, then you must have at least one organization classified as a legal entity and a legal employer.

The Configuration Workbench classifies an organization as a GRE/Legal Entity where your enterprise operates in a country, and classifies it as an Employer if you employ people in that country also. For example, you can have a legal entity in a country where you do business, but do not employ people in that country.

Consolidated Legal Entity

A consolidated legal entity acts on behalf of multiple operating companies that are not legally registered, or simply on behalf of the enterprise in a country. You typically use the consolidated legal entity for when you have multiple operating companies in your enterprise, but for the purposes of consolidation, you group the information into one organization. For management reporting purposes, the organizations below the consolidated legal entity in an organization hierarchy, such as, your departments and sections, can report to any organization in the enterprise. However, for legal reporting purposes, they report up to the consolidated legal entity.

For information on how to model your enterprise using the key organization structures, see: Configuration Models for Your Enterprise Framework, Oracle HRMS Enterprise and Workforce Management Guide

Extending the Enterprise Framework

After you or the Configuration Workbench has set up your basic enterprise framework, you can extend it by setting up the additional organization structures that exist for your enterprise. You use internal organizations to represent the internal divisions or departments, and external organizations to represent the organizations outside of your enterprise for reporting or third-party payment purposes. External organizations can appear in your organization hierarchies together with internal organizations, and are defined in the same way.

See: Key Concepts for Representing Enterprises

You use classifications to define the purpose of an organization, see: Organization Classifications

Basic Enterprise Structure

The following diagram demonstrates a basic enterprise structure, based on the multiple operating companies in one country configuration model. You generate the essential framework of your enterprise using the configuration model that suits your enterprise. The Configuration Workbench defines the basic structure of organizations in your enterprise and places them in an organization hierarchy.

See: Key Concepts for Representing Enterprises

Basic Enterprise Structure

The preceding diagram displays an enterprise based in the U.S. with four separate divisions represented by Companies 1 - 4. The Legal Employers are responsible for employing people and represent the designated employers for all employment-related activities.

The following diagrams are examples of how you can set up and include additional internal and external organizations in your organization hierarchy. Each diagram uses a separate legal employer to explain how you can set up different organizations for different purposes. You can, however, use the same legal employer for each type of setup. You will probably use a combination of the following examples.

Reporting Structures Organization Setup

The organization setup in the preceding diagram represents a simplified structure of the different levels of management reporting. If your management reporting structures and your enterprise's costs are the same, then you can use roll-up reporting capabilities. For example, if you associate a cost center to an HR organization, you can record the payroll costs of the employees assigned to that organization, and the organizations below it in the hierarchy.

See: Internal Organizations and Cost Centers, Oracle HRMS Enterprise and Workforce Management Guide

You can also represent multiple or matrix reporting relationships by setting up one of more organization hierarchies. The organizations you set up can appear in one or several different hierarchies. The Configuration Workbench enables you to add new organizations on top of the basic enterprise structure using worksheets. You can then use the hierarchy diagrammers in Oracle HR to add or change the reporting lines.

See: Moving Organizations or Positions in a Hierarchy, Oracle HRMS Enterprise and Workforce Management Guide

Benefit Providers and Workers Representation Organization Setup

You can set up organizations to represent the benefit providers that supply benefits to the people in your enterprise. For example, in the preceding diagram, a pension provider and a medical/health provider are set up as external organizations in the business group. This set up provides your workforce in the Department and Section organizations with the opportunity to make pension contributions and receive medical cover from the benefit providers.

A trade union and bargaining unit are also set up as external organizations in the business group. These organizations represent the workers' representative bodies.

For more information on the classifications you can choose for your organizations, see: Organization Classifications

Government Reporting Organization Setup

Using the preceding diagram as an example, you use external organizations to represent the government reporting offices outside of your enterprise, such as social insurance providers, tax offices, and establishments. Linking the external organizations to your internal organizations enables:

• Your workforce to inherit the information that the external organizations provide.

• You to efficiently record all of the government reporting details at the legal employer level, rather than at the person level.

• You to meet statutory reporting requirements.

Organization Classifications

Organization classifications define the purpose of an organization and its functionality within Oracle HRMS. The classifications you assign to an organization control the additional information you can set up at the organization level. The Configuration Workbench automatically assigns the appropriate classifications to the organizations it creates.

For more information on the key organization structures you use to represent your enterprise, see: Key Concepts for Representing Enterprises

You can define one organization with multiple classifications or you can define separate organizations to represent different types of entity. For example, you can classify an organization as a legal entity as well as an HR organization if it's the same organization. If they are different, then you create two organizations.

Note: Oracle HRMS enables you to install your own additional information types for classifications.

You can select the following classifications in the Organization window, depending on your legislation:

All Legislations

All legislations can use the following classifications:

• Business Group: Use this classification to group, manage, and control access to data in accordance with the rules and reporting requirements of a country.

• Operating Company: An operating company represents a division or line of business within your enterprise that is legally registered for reporting in at least one country.

• GRE/Legal Entity: Use this classification to represent the following organizations:

  • Ultimate Legal Entity: this represents the enterprise, and typically, the enterprise is the highest (global) level of a business organization.

  • Legal Entity: this represents the designated legal employer for all employment-related activities. The legal authorities in a country recognize this organization as a separate employer. In an organization hierarchy, a legal entity may report to an operating company or to the ultimate legal entity.

  • Consolidated Legal Entity: this organization acts on behalf of multiple operating companies that are not legally registered, or simply on behalf of the enterprise in a country.

    For Chinese users only: Your organization hierarchy must contain at least one GRE with corporate and employer information. Statutory reporting requires this information.

• Employer: Use this along with the GRE/Legal Entity classification to define an organization as a legal entity that is responsible for employing people in a particular country.

  For Indian users only: Your organization hierarchy must contain at least one GRE with income tax, challan bank, tax declaration and representative details. This information is used for statutory reporting.

• HR Organization: Use this classification for all organizations to which you want to assign employees and contingent workers.

• Payee Organization: Use this when defining an external organization that is the recipient of a third party payment from an employee, for example a court-ordered payment. You can then select this organization on the Personal Payment Method window when entering a third party payment method.

• Bargaining Association: Use this when defining an organization that is involved in negotiating a collective agreement. A bargaining association could be any organization representing the employees in negotiations, for example a trade union. The UK legislation also enables you to select a bargaining association in the Union Processing window to set up a union element.

• Representative Body: Use this when defining a representative body. This may be a body defined in legislation, such as a European Works Council, or may be defined by the employer, such as a Sports and Social Club.

• Disability Organization: Use this when defining an external organization with which employee disabilities are registered.

• Medical Service Provider: Use this when defining an organization that provides any medical services, such as medical assessments, to the people in your enterprise.

• Constituency: Use this to define a constituency to group together workers eligible to vote for particular elections.

• Company Cost Center: Use this to define organizations in Oracle HRMS that map to cost centers in Oracle GL. You can set up your application so that whenever a cost center is defined in GL, a corresponding organization with this classification is defined automatically.

• Professional Body Information: Use this to define an organization that is a professional body. Organizations with this classification are available to assign to people in the Qualifications window.

• Operating Unit : Use the operating unit organization classification if you also use Multi-Org applications. You can associate an operating unit with an HR Organization. The application uses the HR Organization to find the operating unit to which a person belongs.

US Legislation

The US legislation can use the following classifications:

• Reporting Establishment, Corporate Headquarters, or AAP Organization: Use these when defining reporting organizations, that is, organizations required for the production of certain reports for government agencies.

• Parent Entity: Use this when defining an organization to be included at the top level of an establishment hierarchy. You can then use the hierarchy when producing certain reports for government agencies.

  If you are assigning this classification to a Business Group, you must assign it to your default Business Group, that is the one defined in your security profile. If you do not, then your data will not be visible when you attempt to create your hierarchy in the Generic Hierarchy window.

• Benefits Carrier, Workers' Compensation Carrier, or Beneficiary Organization: Use these when defining an external organization belonging in one of these classifications. You can then select the organization when defining a benefit, entering information for Workers' Compensation calculations, or recording beneficiaries employees have named for certain benefits.

  The Federal legislation can also use the Beneficiary Organization classification.

UK Legislation

The UK legislation can use the Education Authority classification to define a Local Education Authority (LEA) that is responsible for education within that council's jurisdiction.

Canadian Legislation

The Canadian legislation can use the following classifications:

• Provincial Medical Carrier: Use this to define a medical carrier for a province.

• Provincial Reporting Establishment: Use this to represent employees in the province of Quebec.

French Legislation

The French legislation can use the following classifications:

• Company: records one or more companies in your business group. A company is a legal entity registered to "Registre du Commerce et des Societes". You must have at least one company.

• Establishment: identifies the organization that serves as the legal point of contact for settling any disputes and manages the personal details of the workforce.

  Note: Do not classify an organization as both a company and an establishment; create two separate organizations.

• URSSAF Center or ASSEDIC Center: specifies an external organization that is a Social Security organization. You can select the organization when entering additional organization information for an establishment. You can also select URSSAF organizations when entering additional organization information for a company.

• Insurance Provider or Pension Provider: defines an external organization that provides insurance or pensions. You can select the organization when entering additional organization information for a company or an establishment.

• OPACIF or OPCA: specifies an external organization that collects the company's yearly training contribution.

• CPAM: identifies an external organization as a CPAM office. You can select the organization when entering employment information in the People window.

• Public Sector Other External Organization: records details of the various types of external organizations with whom public-sector companies deal. Be sure to create organizations with this classification as external organizations.

• Grouping of Employers: identifies the employers (normally establishments) who have decided to group together to make it easier to lend each other workforce and also to list the employees, contingent workers, and employees on loan for an establishment from that grouping in the Personnel Registry report.

• Tax Group: defines an external tax office.

Dutch Legislation

The Dutch legislation can use the following classifications:

• Dutch UWV Organization: Use this to indicate if your organization is a social insurance provider. If you enable this classification, you can enter additional information such as the type of provider in the Dutch UWV Organization window.

• Dutch Tax Office: Use this to define an external tax office.

• Dutch Private Health Insurance: Use this to define an external organization that provides private health insurance.

• Pension Provider: Use this to define an external organization that provides pensions to your employees.

German Legislation

The German legislation can use the following classifications:

• Budget Plan Unit: Use this to define internal organizations for which you can use for the budget plan structure. The budget plan structure defines the different levels of positions in your enterprise, and the budget plan units represent the different levels as organizations. You select which budget plan unit the position belongs to in the Position window.

• German Additional Second Pension Insurance: Use this to record information about the contributions an organization makes to a second pension.

• German Capitalized Life Insurance Provider: Use this to indicate if your organization is a provider of German capitalized life insurance.

• German Mandatory Health/Special Care Insurance Provider: Use this to indicate if your organization is a provider of German mandatory health or special care insurance. If you enable this classification, you can enter additional information using the German Social Insurance Providers window.

• German Mandatory Pension Insurance Provider: Use this to indicate if your organization is a provider of German mandatory pension insurance. If you enable this classification, you can enter additional information using the German Social Insurance Providers window.

• German Private Health/Special Care Insurance Provider: Use this to indicate if your organization is a provider of German private health or special care insurance. If you enable this classification, you can enter additional information using the German Social Insurance Providers window.

• German Public Sector: Use this to indicate if your organization is a public sector organization. If you set this to yes then certain public sector specific windows and fields are made available to you.

• German Tax Office: Use this to indicate if your organization is a tax office. If you set this to yes then you can enter additional tax office information using the Others button.

• German Unemployment Insurance Provider: Use this to indicate if your organization is a provider of German unemployment insurance. If you enable this classification, you can enter additional information using the German Social Insurance Providers window.

• German Voluntary Pension Provider: Use this to indicator if your organization is a provider of German voluntary pensions.

• German Work Incident Supervising Office: Use this to indicate if your organization is a work incident supervising office.

• German Workers' Liability Insurance Providers: Use this to indicate if your organization is a provider of German workers' liability insurance.

Hong Kong Legislation

The Hong Kong legislation can use the MPF Trustee Organization classification to set up and enrol employees in an MPF Trustee. This classification allows you to record details of the trustee and details of the scheme provided by the trustee.

Mexico Legislation

The Mexico legislation must use the legal employer classification to define the legal entity. You can add additional organization information for your legal employer, if needed.

Use the GRE/Legal Entity classification to define an organization that is recognized as a separate employer by Social Security or other legal authorities. When you assign a location to a GRE, and you have not already associated them with each other in the generic hierarchy, HRMS will make the association for you.

Saudi Legislation

The Saudi legislation can use the following classifications:

• Saudi GOSI Office: Use this to represent the General Office of Social Insurance (GOSI) which the employer is registered. The GOSI office requires employers to make deductions for eligible employees and send all payments and reports to this office.

• Saudi Employment Office: Use this to represent an office to which the employer reports the status of its disabled employees.

Hungary Legislation

The Hungary legislation can use the following classifications:

• Draft Agency: Use this to represent an external defense organization to which you send employee military service details.

• Company Information: Use this to represent the organization which is legally entitled to hire employees.

• Pension Provider: Use this to indicate an external organization that provides pensions to your employees.

Spanish Legislation

The Spanish legislation can use the following classifications:

• Work Center: Use this to define an internal organization that represents a facility within your enterprise. You use these organizations for statutory reporting purposes.

• Section: Use this to define an internal organization that represents the place where people work. You use these organizations for internal reporting purposes only.

• Tax Office: Use this to indicate if the organization is an external tax office.

• Tax Administration Office: Use this to indicate if the organization is an external tax administration office.

• Social Security Office: Use this to define a social security office as an external organization. If you enable this classification, you can record the social security office details.

• Social Security Province Office: Use this to define an organization as an external social security office. If you enable this classification, you can enter the social security province office details.

• Health Care Organization: Use this to define an organization as an external health care organization. If you enable this classification, you can enter the insurance company details.

Korea Legislation

The Korean legislation can use the following classification:

• Business Place: Use this classification to define an organization as an employer to which you assign employees. You set up information such as the registration number, representative information, and the health insurance number for the National Tax Service (NTS).

Indian Legislation

Your organization hierarchy should contain at least one GRE/Legal Entity (Tax Organization) and Registered Company.

The Indian legislation can use the following classifications:

• Registered Company: Records your company's Legal Name, Registration Number, Corporate Identity Number, Permanent Account Number (PAN) of the company and company's representative details.

• Factory: Records your factory's Registration Number, License Number, National Industrial Code, Production Commencement Date and factory's representative details.

• Shops/Establishment: Records your shops/establishment's registration number and representative details.

• Contractor Details: Records a contractor's details, work details, and representative details. A contractor supplies contingent workers to an enterprise and can be either an individual or an external organization.

• ESI Organization: Use this to define an external organization that provides Employee State Insurance (ESI) to your employees. Records your Employee State Insurance (ESI) organization's Challan Information, General Information and Representative Details. You can have multiple ESI organizations and select an employee's ESI organization in the Assignment window.

• Provident Fund Organization: Records your PF organization's PF challan information, PF information, and PF representative details. You can have multiple PF organizations and select an employee's PF organization in the Assignment window.

• Professional Tax Organization: Records your Professional Tax organization's information, Professional Tax Challan information, and Representative Details information. You can have multiple professional tax organizations and select an employee's professional tax organization in the Assignment window.

• Income Tax Office: Records your income tax organization's information. You can enter the location details of the income tax office. You can select the income tax organization in the GRE/Legal Entity: Income Tax Details window.

• National Pension Scheme: Records the National Pension office information. You can enter the corporate registration account number and the corporate branch account number in the NPS Account Set Up window.

Polish Legislation

The Polish legislation can use the following classifications:

• PL SII Branch: Use this classification to represent a local branch of the Social Insurance Institute (SII), a public organization that deals with the social insurance benefits, such as sickness allowance, maternity allowance, and rehabilitation benefits. You use the SII branch information for social insurance reporting.

• PL Statistic Office: Use this to represent a local statistic office. You use this information in reports sent to the statistic office.

• PL Tax Office: Use this to define the tax office bank accounts for the employer and for the tax collected from the employees. You use this information in statutory reports.

Norwegian Legislation

The Norwegian legislation can use the following classifications:

• Local Unit: Use this classification to identify and report on the different work centers, within your enterprise, to which you assign employees.

• Payee Organization: Use this classification to define an external organization which receives third party payment from an employee

• Social Security Office: Use this to define external social security office organizations.

• Pension Provider: Use this classification to define an external organization that provides pensions to your employees.

• Statement Provider: Use this classification to define an external organization that provides reports on behalf of the legal employer.

• Tax Office: Use this classification to define an external tax organization.

Finnish Legislation

The Finnish legislation can use the following classifications:

• Local Unit: Use this classification to identify and report on the different work centers, within your enterprise, to which you assign employees.

• External Company: Use this to record details of the various types of external organizations with whom your organization deals. Ensure to create organizations with this classification as external organizations.

• Pension Provider: Use this to record the basic information about pension insurance providers to which you transfer the appropriate pension insurance deductions.

• Accident Insurance Provider: Use this to identify organizations that provide accident insurance coverage, group life insurance, and unemployment insurance.

• Finnish Magistrate Office: Use this for identifying the authority responsible for processing the employee court orders.

• Finnish Trade Union: Use this to record the basic information about the employees' trade unions to process employee deductions.

• Provincial Tax Office: Use this to identify the legal employer's tax office.

Danish Legislation

The Danish legislation can use the following classifications:

• Service Provider: Use this classification to record details of the various types of external service providers with whom your organization deals.

• Pension Provider: Use this classification to define external pension providers.

Swedish Legislation

The Swedish legislation can use the following classifications:

• Local Unit: Use this classification to identify and report on the different work centers, within your enterprise, to which you assign employees.

• Social Security Office: Use this to define external social security office organizations with which you coordinate medical reimbursements for the employees.

• Swedish Enforcement Office: Use this to define external enforcement office organizations with which you coordinate the attachment of earnings deductions for the employees.

South African Legislation

The South African legislation can use the following classification:

• Training Provider: Use this to indicate if an organization is a training provider.

UAE Legislation

The UAE legislation can use the Legal Employer classification to define and enter additional organization information for your legal employer.

Irish Legislation

The Irish legislation can use the following classifications:

• Legal Employer: Use this classification to define and enter additional organization information for your legal employer.

• Pension Provider: Use this classification to define external pension provider.

Setting Up Danish Organizations

Set up your organizations in the order shown below. This structure defines the relationship between the employee and the employer – this structure is important in terms of both legal liability and identifying the breakdown of information for various statutory reports.

1. Set up a business group and any other non-Danish specific organizations required by your enterprise. You can enter employment defaults for a business group or HR organization.

   For more information on entering employment defaults, see: Entering Employment Defaults.

2. Create your legal employers and enter statutory information and employment defaults for them.

3. Create the service provider that performs various services for your enterprise. You can create only one service provider for a business group.

4. Create the pension providers to which you transfer the monthly pension amount.

   For more information on how to create the organizations and additional information described in this topic, see: Creating an Organization and Entering Additional Information.

Creating an Organization

Use the Organization window to create:

• Business groups

• External organizations (for example, tax offices, pension providers, insurance carriers, disability organizations, benefit carriers, or recruitment agencies)

• Internal organizations (for example, departments, sections or cost centers)

• GREs/Legal Entities

If you use the Configuration Workbench to configure your enterprise structure, then you only need to create the additional internal and external organizations you require. For example, you can set up additional organizations to represent the internal divisions or departments, and external organizations for reporting or third party payments.

See: Extending the Enterprise Framework

To create an organization

1. Navigate to the Organization window and click New to create a new organization.

   Note: For information about querying existing organizations, see: Finding an Organization, Oracle HRMS Enterprise and Workforce Management Guide

2. Enter a name for your organization in the Name field. A check is performed to see if organizations with the same name already exist.

   All Oracle applications you install share the information entered in the Organization window. Therefore organization names must be unique within a business group, and business group names must be unique across your applications network.

   You can create two organizations with the same name in different business groups but this can cause confusion later, if the HR: Cross business group profile option is set to Yes and you decide to share certain information across all business groups. If you decide to create two organizations with the same name, be sure that this will not cause you problems in the future.

3. Optionally, select an organization type in the Type field.

   Organization types do not classify your organization, you use them for reporting purposes only. The type may identify the function an organization performs, such as Administration or Service, or the level of each organization in your enterprise, such as Division, Department or Cost Center. You create the organization types you require by entering values for the Lookup Type ORG_TYPE.

4. Enter a start date in the From field. This should be early enough to include any historical information you need to enter.

   Note: You cannot assign an employee to an organization before the start date of the organization.

5. Enter a location, if one exists. You can also enter an internal address to add more details such as floor or office number.

   Dutch only: If you are setting up external organizations for a tax office, a social insurance provider or a private health insurance provider, you must enter the postal address and contact details using the NL_POSTAL_ADDRESS Location EIT.

   Mexico only: When defining a GRE/Legal Entity, if you select a location here, HRMS automatically associates it with this GRE in the Generic Hierarchy.

   US only: If you are using Oracle Payroll in the US, every organization to which employees can have assignments, including business groups, must have on record a location with a complete address. This is because the system uses the location of the organization of the employee's primary assignment to determine employee work locations for tax purposes. This does not apply to GREs, because the assignment to a GRE exists in addition to the assignment to an organization.

   India only: You can define an income tax organization and enter its location details. You can then select this organization at the GRE/Legal Entity Income Tax Office.

   Note: If you are an Oracle Inventory user, then you must not assign a location to more than one organization classified as an Inventory Organization.

6. Enter internal or external in the Internal or External field. You cannot assign people to an external organization.

   Examples of external organizations that may require entry are disability organizations, benefits carriers, insurance carriers, organizations that employees name as beneficiaries of certain employee benefits, and organizations that are recipients of third party payments from employees' pay.

7. Save the basic organization details.

Entering Additional Information

For each classification you set up you can enter additional information. This information can be different for each classification.

For business group see: Business Group

For HR organization see: HR Organization

For legal employer see: Legal Employer

For service provider see: Service Provider

For pension provider see: Pension Provider

For representative body see: Representative Body

For constituency see: Constituency

For bargaining association see: Bargaining Association

For company cost center see: Company Cost Center

For professional body information see: Professional Body Information

See Classification and Additional Information Types if you need to check which classification to select.

To enter Business Group additional information:

1. Click on the organization classification for which you want to enter additional information.

2. Choose the Others button to open the Additional Organization Information window.

3. Select one of the following:

   • Business Group Information, see: Entering Business Group Information, Oracle HRMS Enterprise and Workforce Management Guide

   • Budget Value Defaults, see: Business Groups: Entering Budget Value Defaults, Oracle HRMS Enterprise and Workforce Management Guide

   • Employment Defaults, see: Entering Employment Defaults

   • Identification Codes, see: Entering Identification Codes

   • Work Day Information, see: Business Groups and HR Organizations: Work Day Defaults, Oracle HRMS Enterprise and Workforce Management Guide

   • Benefits Defaults, see: Business Groups: Defining a Default Monthly Payroll, Oracle HRMS Enterprise and Workforce Management Guide

   • PTO Balance Type, see Business Groups: Selecting a PTO Balance Type, Oracle HRMS Enterprise and Workforce Management Guide

   • Recruitment Information, see: Business Groups: Entering Recruitment Information, Oracle HRMS Enterprise and Workforce Management Guide

   • Payslip Information, see: Entering Payslip Information, Oracle HRMS Enterprise and Workforce Management Guide

   • SOE Information, see: Entering SOE Information

   • SOE Detail Information, see: Entering SOE Detail Information

   • Self Service Preference Information, see: Entering Self-Service Preference Information, Oracle HRMS Enterprise and Workforce Management Guide

4. Repeat these steps to enter further information.

To enter HR organization additional information:

1. Click on the organization classification for which you want to enter additional information.

2. Choose the Others button to open the Additional Organization Information window.

3. Select one of the following:

   • Reporting Information, see: Entering Reporting Information for an HR Organization or a Company Cost Center., Oracle HRMS Enterprise and Workforce Management Guide

   • Costing Information, see: HR Organizations: Entering Costing Information, Oracle HRMS Enterprise and Workforce Management Guide

   • Employment Defaults, see: Entering Employment Defaults

   • Parent Organization, see: HR Organizations: Entering Parent Organizations, Oracle HRMS Enterprise and Workforce Management Guide

   • Work Day Information, see: Business Groups and HR Organizations: Entering Work Day Defaults:, Oracle HRMS Enterprise and Workforce Management Guide

   • Payslip Information, see Entering Payslip Information, Oracle HRMS Enterprise and Workforce Management Guide

   • Self Service Preference Information, see Entering Self-Service Preference Information, Oracle HRMS Enterprise and Workforce Management Guide

   • Related Organizations Information, see: Entering Related Organizations Information for an HR Organization, Oracle HRMS Enterprise and Workforce Management Guide

4. Repeat these steps to enter further information.

To enter legal employer information:

1. Click on the appropriate organization classification.

2. Click Others to open the Additional Organization Information window.

3. Select one of the following:

   • DA Office Code, see: Entering DA Office Code

   • Employment Defaults, see: Entering Employment Defaults

   • Holiday Entitlement, see: Entering Holiday Entitlement

   • Legal Entity Details, see: Entering Legal Employer Details

   • Sick Pay Defaults, see: Entering Sick Pay Defaults

4. Repeat these steps to enter further information.

To enter service provider information:

1. Click on the appropriate organization classification.

2. Click Others to open the Additional Organization Information window.

3. For entering service provider details, see: Entering Service Provider Information

4. Repeat these steps to enter further information.

To enter pension provider information:

1. Click on the appropriate organization classification.

2. Click Others to open the Additional Organization Information window.

3. For entering contact details, see: Entering Pension Provider Information

4. Repeat these steps to enter further information.

To enter representative body additional information:

1. Click on the appropriate organization classification.

2. Click Others to open the Additional Organization Information window.

3. Select one of the following:

   • Representative Body Information, see: Entering Representative Body Information, Oracle HRMS Enterprise and Workforce Management Guide

   • Constituency information, see: Entering Constituency Information for a Representative Body, Oracle HRMS Enterprise and Workforce Management Guide

4. Repeat these steps to enter further information.

To enter constituency additional information:

1. Click on the organization classification for which you want to enter additional information.

2. Choose the Others button to open the Additional Organization Information window.

3. Select one of the following:

   • Location, see Entering Location Information for Constituencies, Oracle HRMS Enterprise and Workforce Management Guide

   • Organization, see Entering Organization Information for Constituencies, Oracle HRMS Enterprise and Workforce Management Guide

   • Organization Hierarchy, see Entering Organization Hierarchy information for Constituencies, Oracle HRMS Enterprise and Workforce Management Guide

   • Grade, see Entering Grade information for Constituencies, Oracle HRMS Enterprise and Workforce Management Guide

   • Bargaining Unit, see Entering Bargaining Unit information for Constituencies, Oracle HRMS Enterprise and Workforce Management Guide

   • Job, see Entering Job information for Constituencies, Oracle HRMS Enterprise and Workforce Management Guide

   • Collective Agreement Grade, see Entering Collective Agreement Grade information for Constituencies, Oracle HRMS Enterprise and Workforce Management Guide

4. Repeat these steps to enter further information.

To enter bargaining association information:

1. Click on the organization classification for which you want to enter additional information.

2. Choose the Others button to open the Additional Organization Information window.

3. Select Trade Union Information, see: Entering Trade Union Information for a Bargaining Association, Oracle HRMS Enterprise and Workforce Management Guide

4. Repeat these steps to enter further information.

To enter company cost center information:

1. Click on the organization classification for which you want to enter additional information.

2. Choose the Others button to open the Additional Organization Information window.

3. Select one of the following:

   • GL Company Cost Center, see: Entering GL Company Cost Center Information for a Company Cost Center, Oracle HRMS Enterprise and Workforce Management Guide

   • Reporting Information, see: Entering Reporting Information for an HR Organization or a Company Cost Center., Oracle HRMS Enterprise and Workforce Management Guide

4. Repeat these steps to enter further information.

To enter professional body information:

1. Click on the organization classification for which you want to enter additional information.

2. Choose the Others button to open the Additional Organization Information window.

3. Select Professional Body Info, see: Entering Additional Information for a Professional Body, Oracle HRMS Enterprise and Workforce Management Guide.

4. Repeat these steps to enter further information.

Entering Additional Organization Information

Entering Identification Codes

Enter the identification codes from the Additional Organization Information window. You enter identification codes to assist statutory reporting at the business group level and to capture information you require to process third-party payments.

To enter identification codes

1. In the Organization window, query the organization if it does not already appear there. In the Organization Classifications region, select Business Group, click Others, and select Identification Codes.

2. Click in the Identification Codes field to open the Identification Codes window.

3. Enter the DA System Number you require for the statistics office statutory reporting.

4. Enter the Tax Reserve, AMB Reserve, SP Reserve, and Holiday Days Reserve codes to enable you to process third-party payments.

5. Save your work.

Business Groups: Entering SOE Information

You enter statement of earnings (SOE) information at the business group level to specify what information appears on each region of the statement of earnings. You can enter element set names for earnings, deductions, and any imputed earnings to ensure that the elements within these sets appear on the statement of earnings. You can also supply balance attributes for SOE display.

To enter SOE information

1. In the Organization window, query the business group if it does not already appear. In the Organization Classifications region, select Business Group, click Others, and select SOE information

2. Click in a field of the Additional Organization Information window to open the SOE Information window.

3. Select the SOE user category. You use this information to restrict the type of users who can view the SOE.

4. Select the Earnings element set in the Elements 1 field. (The set name typically begins with a legislative identifier, and then incorporates SOE EARNINGS as the next part of the name).

5. Select the Deductions element set in the Elements 2 field. (The set name typically begins with a legislative identifier, and then incorporates SOE DEDUCTIONS as the next part of the name).

6. If you have an element set for imputed earnings, select it in the Elements 3 field.

   Note: For South Africa only: You select the ZA SOE Fringe Benefits and Other Non Payments element set in the Elements 3 field.

7. Select the Information element set in the Information 1 field. You create this element set when you set up your statement of earnings.

   See: Setting Up a Global Statement of Earnings

8. Select your predefined balance attributes in the Balances fields (Balance 1, Balance 2 and so on)

9. Save your work.

Business Groups: Entering SOE Detail Information

The statement of earnings (SOE) displays details of earnings, deductions and other payroll-related information for an employee assignment. Oracle HRMS enables you to determine the display name for elements and balances, and the sequence in which they display.

To enter SOE detail information

1. In the Organization window, query the business group if it does not already appear. In the Organization Classifications region, select Business Group, click Others, and select SOE Detail Information.

2. Click in a field of the Additional Organization Information window to open the SOE Detail Information window.

3. Select the type of SOE details that you want to record, by selecting balance or element.

   • If you select balance, then select the balance, dimension, and balance display name that you want the SOE to display.

   • If you select element, then select the element name, input value, and element display name that you want the SOE to display

4. Save your work.

Entering DA Office Code

To enter the DA Office code

1. In the Organization window, query the organization if it does not already appear there. In the Organization Classifications region, select Legal Employer, click Others, and select DA Office Code.

2. Click in the DA Office Code field to open the DA Office Code window.

3. Enter the DA Society Code you require for the Statistics Office statutory report.

4. Save your work.

Entering Employment Defaults

Enter the employment defaults from the Additional Organization Information window. You enter employment defaults to assist statutory reporting at the legal employer level.

Enter employment defaults at the level at which the defaults typically apply. For example, enter employment defaults at the business level if these defaults apply to most people in a country. Enter them at lower levels of the organizations if the defaults tend to differ at those levels. The defaults that you enter at a lower level in the organization overrides defaults entered at higher levels.

To enter employment defaults

1. In the Organization window, query the organization if it does not already appear there. In the Organization Classifications region, select Business Group, HR Organization, or Legal Employer, click Others, and select Employment Defaults.

2. Click in the Employment Defaults field to open the Employment Defaults window.

3. Select the condition of employment to indicate the employee type.

4. Select the employee group.

5. Save your work.

Entering Holiday Entitlement Details

Enter the holiday entitlement details from the Additional Organization Information window. You enter holiday entitlement details that you require for holiday pay calculation. You can override the holiday entitlement details at the legal employer level by entering the details at the assignment level.

To enter holiday entitlement details

1. In the Organization window, query the organization if it does not already appear there. In the Organization Classifications region, select Legal Employer, click Others, and select Holiday Entitlement.

2. Click in the Holiday Entitlement field to open the Holiday Entitlement window.

3. Select the work pattern.

4. Select the accrual type.

5. Enter the hourly accrual rate to override the statutory percentage for holiday pay calculation of hourly paid employees.

6. Enter the holiday allowance rate to override the statutory percentage for holiday allowance calculation of monthly paid employees.

7. Select Yes if you are using the holiday card.

8. Enter a rate for the public holiday in the SH Payment Rate field.

9. Enter a value in the SH Payment Percentage field.

10. Save your work.

11. Select Yes if you want to reduce holiday accrual calculation.

    • You cannot change this option mid-year

    • If you have existing payroll runs for this year when you change the EIT option, the application does not calculate or modify the historic runs. You must ensure that you change this option before any payroll runs in the year.

    • The Danish payslip and SOE display the reduced holidayable pay amount.

    The Holiday Accrual formula ensures that the application reduces the holidayable pay by 4.8% for every paid holiday spent by a salaried employee in a given period. The application then calculates the holiday allowance on this reduced pay. Note that the predefined balance Holidayable Pay holds the unreduced holidayable pay amount while the balance Reduced Holidayable Pay holds the reduction amount of the holidayable pay. The payroll run creates an additional run result of the new element Holidayable Pay Reduction, whenever there is a reduction in the holidayable pay. The run result values of this new element contain the details of the reduction amount, reduced amount, and the number of holidays causing the reduction.

Entering Legal Employer Details

Enter the legal employer details from the Additional Organization Information window. Use the Legal Entity Details window to record information about the legal employer, such as the various identification numbers that your organization uses. You use this information for tax reporting.

To enter legal employer information

1. In the Organization window, query the organization if it does not already appear there. In the Organization Classifications region, select Legal Employer, click Others, and select Legal Entity Details.

2. Click in the Legal Entity Details field to open the Legal Entity Details window.

3. Enter the legal employer's CVR number. If your enterprise is a data supplier, then you must use the CVR number in communications with the clearinghouse.

4. Enter the workplace code. You use this information for statutory reporting purposes.

5. Indicate whether your enterprise is a data supplier. A data supplier is an organization that manages transactions through the clearinghouse.

6. Save your work.

Entering Sick Pay Defaults

Enter the sick pay defaults from the Additional Organization Information window. You require this information for sick pay calculation. You can override the sick pay defaults at the legal employer level by entering the defaults at the assignment level.

To enter the sick pay defaults

1. In the Organization window, query the organization if it does not already appear there. In the Organization Classifications region, select Legal Employer, click Others, and select Sick Pay Defaults.

2. Click in the Sick Pay Defaults field to open the Sick Pay Defaults window.

3. Select Yes if the employee is eligible for Section 27 registration.

4. Enter the start and end dates of the Section 27 registration of the employee.

5. Save your work.

Entering Service Provider Information

Enter the service provider information from the Additional Organization Information window. Use the Service Provider window to enter details about the various third-party organization that your enterprise uses, such as a service provider can manage and run the payroll for your enterprise.

To enter service provider details

1. In the Organization window, query the organization if it does not already appear there. In the Organization Classifications region, select Denmark Service Provider and click Others.

2. Click in the Service Provider field to open the Service Provider window.

3. Enter the service provider's CVR number. If the service provider manages transactions for your enterprise, then the clearinghouse must know the service provider's CVR number.

4. Save your work.

Entering Pension Provider Information

Enter the pension provider details from the Additional Organization Information window. Use the Pension Provider window to record information about the employee's pension provider. You require this information to coordinate the payment of the employee's monthly pension amount through the clearinghouse, to the correct pension provider.

To enter pension provider details

1. In the Organization window, query the pension provider if it does not already appear there. In the Organization Classifications region, select Denmark Pension Provider and click Others.

2. Click in the Pension Provider field to open the Pension Provider window.

3. Enter the PBS number. The clearinghouse uses the PBS number to identify the correct pension provider when you transfer the employee's monthly pension amount.

4. Enter the information number. The clearinghouse uses the information number to identify whether the transaction is related to payroll, pension, tax, or court order.

5. Enter the pension provider code. You use this information during internal communication.

6. Save your work.

Locations

Locations

In Oracle HRMS, you set up each physical site where your employees work as a separate location. If you use the Configuration Workbench to configure your basic enterprise structure, then you only need to create locations for the additional organizations you require.

See: Key Concepts for Representing Enterprises

You can set up:

• Global locations: These are available in all Business Groups.

• Business Group locations: These can only be used in one Business Group.

• Business Place locations (Korea only): These can only be used in one Business Place.

Similarly, you enter the addresses of external organizations that you want to maintain in your system, such as employment agencies, tax authorities, and insurance or benefits carriers. When setting up internal or external organizations, you select from a list of these locations.

This approach has these advantages:

• You enter information about each location only once, thereby saving data entry time.

• Central maintenance of locations ensures consistency of address standards.

• Your work sites exist as separate structures identifiable for reporting purposes, and for use in the rules that determine employee eligibility for various types of compensation and benefits.

Mexico Only

Oracle HRMS uses the location associated with an assignment to determine its social security affiliation. It is recommended that you associate all locations with one or more appropriate GRE using the Mexico HRMS Statutory Reporting Hierarchy. Oracle HRMS determines the GRE of an assignment based on the hierarchy you have associated the location with.

See: Government Reporting Entities (GREs), Oracle HRMS Enterprise and Workforce Management Guide (Mexico)

See: Mexico HRMS Statutory Reporting Generic Hierarchy Type, Oracle HRMS Enterprise and Workforce Management Guide (Mexico)

See: Entering an Assignment (Assignment Window)

Location Extra Information Types

You can define as many Extra Information Types as you require to hold information about locations. There is also one predefined location EIT.

• Denmark Location Details - this EIT enables you to enter the Production Unit Code.

  If a location is attached to an assignment and a value entered in this EIT, the application retrieves the Production Unit Code from this EIT. If you do not specify a value in this EIT, then the application checks the HR Org and Legal Employer EITs.

To be able to access the predefined EITs, you must link the EIT to your responsibility, see: Setting Up Extra Information Types Against a Responsibility, Oracle HRMS Configuring, Reporting, and System Administration Guide

Setting Up Locations

You can enter addresses in the Location window.

Locations are shared across Business Groups in HRMS and with two other Oracle applications: Inventory and Purchasing. HRMS does not use some of the fields in the Location window. These fields are disabled for HRMS users. For example, the Legal Address check box is read-only and supports future functionality in Oracle Financials.

For information about Oracle Purchasing locations, see: Defining Locations, Oracle Purchasing User's Guide.

To enter a work location and its address

1. Enter the name of the location, and a description if required.

2. Uncheck the Global check box if you want the location to only be available within the default Business Group of your current responsibility. Accept the default if you want the location to be a global location and therefore available to all Business Groups.

   If you are setting up a global location, the location name must be unique across all Business Groups.

   If you are setting up a location for one Business Group, the location name must be unique within that Business Group and all global locations, but does not have to be unique across all Business Groups.

   Note: You cannot amend the Global check box once you have set up your location.

3. Select a national address style from the list. If a local address style exists for your country, it is displayed as the default. Otherwise, the international style is displayed.

   US and Canadian users: The local style is only displayed if you have Vertex geocode data installed.

   Note: You can change existing address styles or create new ones if required.

   See: Changing Default National Address Styles, Oracle HRMS Configuring, Reporting, and System Administration Guide

4. Enter address information in this window.

   US Payroll users: If you change a location address, you need to update the location in the State Tax Rules window for each assignment at that location.

   US Users: In the EEO Exception Report, location addresses are truncated to 115 characters if the combined length of the location code and address lines 1,2, and 3 is greater than 115 characters.

   Canadian Payroll users: You enter Census Metropolitan Area codes here in the Location Address flexfield.

   Irish users: You enter the employer's address here and attach it to the legal employer.

5. If the mailing address of the location differs from the payroll taxation address, you need to enter an overriding address into the Payroll Tax fields.

6. Select a time zone if you want to associate a time zone with the location.

   Note: When you select a time zone, ensure that it corresponds to the location's address.

7. Choose OK, and then choose the Extra Information button to enter any additional information required by your enterprise.

   See: Entering Extra Information, Oracle HRMS Configuring, Reporting, and System Administration Guide

8. Save your location.

To make locations inactive

Making a location inactive prevents users from selecting it.

To remove an address from the Location list

1. Enter an inactive date when the location is no longer in use in your enterprise, and save your changes.

To delete a location

You can delete locations that have not been used.

Note: If a location is still in use, but you do not want it to be selected today or in the future, enter an inactive date.

1. Query the location you want to delete.

2. Delete the location.

3. Save the changes.