Prerequisite Tasks

You will find most of the setup tasks required for payroll processing in the Define Payroll task list in the Setup and Maintenance work area.

There are required common application configuration tasks you may have already donebecause other HCM applications require them. You may want to revisit tasks to address payroll-specific requirements,such as when you create tax reporting units, to verify.

If these prerequisite tasks haven't been completed, you can find them within Define Common Applications Configuration for Human Capital Management:

• Define Features by Country or Territory

• Define Geographies for HCM

• Define Enterprise Structures for HCM

Define Geographies for HCM

Verify predefined geographies, and define any additionally required local geographies.

For further information, see these topics in the Help Center:

• Geography Structures: Explained

• Geography Validation: Explained

Define Enterprise Structures for HCM

Complete tasks in the task lists shown in this table.

Task List	Action
Define Legal Jurisdictions and Authorities for HCM	Create a legal jurisdiction if not already created or predefined for your country or territory. Create a legal authority for each government body you interact with. Create addresses for legal entities and legal authorities.
Define Legal Entities for HCM	Create a legislative data group for each country or territory you operate in, to partition your payroll data. Create at least one legal entity designated as a payroll statutory unit (PSU) for each legislative data group. Associate each PSU with a legislative data group. Create calculation cards for statutory deductions for each PSU, if supported for your country or territory.
Define Legal Reporting Units for HCM	Create any additional legal reporting units that you need under a PSU and designate them as tax reporting units (TRUs). Define the TRUs as reporting establishments as needed. Optionally, create calculation cards for statutory deductions for each TRU, if supported for your country or territory.
Define Business Units for HCM	Create business units that you can use to perform one or more business functions.
Define Chart of Accounts for Enterprise Structures	Create business units that you can use to perform one or more business functions.
Define Accounting Configurations for HCM	Create charts of accounts, ledgers, and accounting calendars. When you create a bank for a payment source, you must select a legal entity that's assigned to a ledger for the associated legislative data group. Payroll costing also requires these financial components.

Define Features by Country or Territory

Review and update the selected features for your countries and territories of operation. These settings control the availability of payroll-related features, such as element templates, and address style and address validation rules used in processes and reports.