Before You Can Use Payroll Elements in Compensation

Whether you've Oracle Fusion Cloud Global Payroll Interface or Oracle Fusion Cloud Global Payroll, you must define payroll statutory units to use in Oracle Fusion Cloud Compensation. You must also associate a legislative data group with each unit.

Do this using the Manage Legal Entities and Manage Legal Entity HCM Information tasks. It ensures that when you hire people, payroll relationships get created automatically. People need these payroll relationships to get their compensation element entries created.

Payroll Definitions

The payroll definition supplies each person's pay period frequency and end dates. Even if you use a third-party payroll provider, you need to define a payroll if any of these conditions apply:

• You want to use nonrecurring elements.
  Note: We recommend that you assign payrolls to everyone, even when using only recurring elements.
• You want to create a salary basis that uses a frequency of Payroll period.
• You're implementing total compensation statements and these conditions apply:
  • You use recurring elements and want total compensation statements to prorate salary element entries when someone gets hired during a payroll period. You also want the proration to happen when someone's employment is terminated during a payroll period.
  • You want to let individuals view their total compensation statement details to see payroll period amounts.
• You license Oracle Global Payroll Interface.

You don’t need to define payroll definitions when both of these conditions apply:

• You use only recurring elements defined at the assignment level.
• You store salary at the assignment level of a legal employer.

But if you use compensation history, all compensation awards appear in the recurring payment sections as end-of-year amounts.

Consolidation Groups

If you create payroll definitions, you need to also define consolidation groups. Each legislative data group that you define elements for needs to have at least one consolidation group.