Define Legal Reporting Units

This topic demonstrates how you can define and set up a legal reporting unit (LRU) for China.

To define an LRU for HCM, you must:

• Create an LRU

• Define the LRU registrations

• Define the LRU HCM information

Before You Start

Before you define an LRU, you must:

• Define a Chinese legal entity to which this LRU belongs.

• Use the Manage Legal Addresses task to define a legal address for the LRU you're about to define.

• Define the required jurisdictions for the LRU you're about to define.

How to Create a Legal Reporting Unit

To create a legal reporting unit:

1. In the Setup and Maintenance work area, go to the following:

   • Offering: Workforce Deployment

   • Functional Area: Legal Structures

   • Task: Define Legal Reporting Units for Human Capital Management

   Expand the task to display a list of related tasks.

2. Click the Select Scope link for the Define Legal Reporting Units for Human Capital Management task.

3. On the Select Scope window, select the Manage Legal Reporting Unit and select Create New in the Legal Reporting Unit field.

4. Click Apply and Go to Task.

   An LRU with the same name as the previously created legal entity is created by default. This LRU is designated as the main legal reporting unit for the legal entity.

5. To create a second legal reporting unit for this legal entity, click Create on the Manage Legal Reporting Units page.

6. Complete the fields on the Legal Reporting Unit page, noting the following:

   • When you select a territory, the Jurisdiction field displays the identifying jurisdiction, such as Beijing Income Tax. If you have defined additional jurisdictions, you can select one from the list.

   • Indicate whether this is the main legal reporting unit for this legal entity.

7. Click Save and Close.

How to Define Legal Reporting Unit Registrations

To use the delivered tax reports, you must set up income tax registration information for a tax reporting unit in the territory where it operates. To use the delivered public housing fund and social insurance calculation functions, set up public housing fund and social insurance registration information for a tax reporting unit in the territory where it operates.

To set the scope and define the legal reporting unit registration:

1. Set the scope for this task as follows:

   1. Click the Select Scope link for the Manage Legal Reporting Unit Registrations task.

   2. On the Select Scope window, select Manage Legal Reporting Unit Registrations and select Select and Add in the Legal Reporting Unit field.

   3. Click Apply and Go to Task.

   4. On the Select and Add: Legal Reporting Unit page, search and select the legal reporting unit you have just created and click Save and Close.

   The Scope column on the task list page should now display the selected LRU as the scope for those tasks related to the LRU.

2. Select Go to Task for the Manage Legal Reporting Unit Registrations task.

3. Click Create.

4. Enter the required information on the Create Registration page, noting the following:

   • When you select a jurisdiction, the Territory field is populated automatically. For example, if you select China Income Tax, the territory is shown as China.

   • The Issuing Legal Authority field displays a list of all legal authorities associated with the selected jurisdiction.

   • The Registered Address field displays a list of all predefined legal addresses.

   • In the Legal Entity Registration Number field, enter a valid value.

5. Click Save and Close.