An Oracle White Paper

Nov 2014

Oracle Fusion Human Capital Management:

International Human Resources

Oracle Fusion Human Capital Management: International Human Resources

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Oracle Fusion Human Capital Management: International Human Resources

Introduction ........................................................................................2
Oracle Fusion HCM International HR Configuration ...........................3
Enterprise Structures ......................................................................3
Names ............................................................................................3
National Identifier ...........................................................................3
Configure Legislations for Human Resources.....................................4
Manage Payroll Product Usage ..........................................................6
Additional Payroll Setup for HR Users ................................................6
Further Considerations .......................................................................6
Security ..........................................................................................6
Reporting........................................................................................6
Interfaces .......................................................................................7
Further Reading .................................................................................7

Oracle Fusion Human Capital Management: International Human Resources

Introduction
The Oracle Fusion HCM product family consists of many products, including Global Human Resources
(HR), Global Payroll, Benefits, Time and Labor, as well as Talent Management. All of these products are
designed to be used globally. Some of these products, especially HR and Payroll, require a high level of
statutory compliance. Oracle Fusion HCM delivers many legislations. The International HR and Payroll
setup task lists provide the ability to set up legislations where Oracle Fusion HCM has not yet delivered
one. These tasks are also useful for organizations, such as the United Nations, which operate in many
host countries but have unique requirements and commitments that require additional configuration.
The International Payroll setup task list is described in a separate white paper (article ID 1453008.1 on
My Oracle Support).
This white paper focuses on the setup task list for International HR configuration but will also cover
additional configurations as needed.

Oracle Fusion Human Capital Management: International Human Resources

Oracle Fusion HCM International HR Configuration

With the Global HR model, you can use the HR features with little configuration, regardless of country.
Areas to note include:

Enterprise structures

Names

National identifiers

Enterprise Structures
Legal employers must be mapped to payroll statutory units (PSU) and legislative data groups (LDG) correctly.
PSUs group multiple legal employers to determine reporting and other payroll hierarchies.
LDGs contain information on country, currency, and other important legislative information.
PSUs and LDGs are required for the creation of employee payroll relationships. Payroll relationships are required
for element entries, which are used in absence management and other areas. They are also required for payroll
processing using Oracle Fusion Global Payroll or a third-party payroll product. If this setup is done incorrectly, it
can also impact your benefits and compensation management.

Names
You can enter a global name as well as a local name for people. The local name can be in a language other than
English where multi-language support is available and enabled.
The global name can also be in a language other than English. It is an enterprise value that you can set using the
Global-Name Language field.

Figure 1: UI showing the Personal Details configuration task.

National Identifier
The National Identifier is specific to a country. You can set it up through the lookup type:
PER_NATIONAL_IDENTIFIER_TYPE.

Oracle Fusion Human Capital Management: International Human Resources

Configure Legislations for Human Resources

The Configure Legislations for Human Resources task helps you to set up areas that are needed for HR
localizations where Oracle has not yet delivered a configured legislation. Depending on whether you use Global
HR only or also use Oracle Fusion Global Payroll Interface, a different setup may be required. You can accept
the default settings, where available, and return to the page at a later time to change the settings.

Figure 1: Setup and Maintenance work area, showing the Define Elements, Balances and Formulas setup tasks.

Task Name: Configure Legislations for Human Resources

You complete several pages in this task when you create a new legislation.

Select Legislation
Select the name of the country or territory for which you want to define a legislation.
Note: Countries where the legislation is delivered by Oracle, or which have been configured in a prior
implementation, appear as installed countries on this page and are not available for selection.

Legislative Rules
Field

Instructions

Tax Year Start Date

Choose the day and month when the income tax balances reset to start
annually.

Currency

Currency defaults to that of the country selected. You can change it to a

different currency.

Period of Service on Rehire

Select the appropriate option:

o

Create New Record

Creates a new payroll relationship each time there is a new

Oracle Fusion Human Capital Management: International Human Resources

employment.
o

Use Last Record

Creates a new payroll relationship only if there is an interruption in
employment; otherwise, uses an existing payroll relationship.

Use Lifetime Record

Restarts an existing payroll relationship at the time of rehire.

Element Classifications
Select which primary element classifications can be used for the legislation. You can rename the
classifications to the names commonly used in that legislation.

Payment Types
Choose from the following payment methods:
o

Cash

Check

Electronic Funds Transfer (EFT)

You can rename the above payment methods to names that are appropriate to your legislation.

Component Groups
Select which statutory deductions apply for your legislation, and any other component groups you plan
to use:
o

Absences

Benefits

Federal (commonly known as Income Tax)

Social Insurance

Time Cards

You can rename these groups to the names appropriate to your legislation.

Balance Dimensions
The most common balance dimensions are already selected by default. You can add or remove them as
appropriate.

Oracle Fusion Human Capital Management: International Human Resources

Manage Payroll Product Usage

If you use Oracle Fusion Global Payroll Interface, which provides predefined extract definitions for third-party
payroll providers, you must select Payroll Interface as the product usage for your new legislation. Use the Manage
Payroll Product Usage task. Prior to release 8, use the Payroll License action parameter on the Manage Payroll
Process Configuration page.

Additional Payroll Setup for HR Users

After completing the Configure Legislations for Human Resources and Manage Payroll Product Usage tasks, you
might need to set up these additional areas:

Element templates (required for users of Benefits, Compensation, and Time and Labor)
The Manage Elements task is a guided flow for creating the relevant elements. For HR users, this can be any
earnings, deductions, or information elements required.

Calculation cards (required only if using Global Payroll Interface)

Use the Manage Calculation Cards task to attach a deduction card to each employee so that the appropriate
payroll calculation can be applied correctly.

Payroll definitions (required to establish payroll periods)

For nonrecurring elements, you must set up a payroll definition with appropriate payroll periods, offsets, and
other information. Use the Manage Payroll Definitions task. Before creating a payroll definition, you must
create at least one consolidation group using the Manage Consolidation Groups task.

Payment method and account information (required for payees)

Use the Manage Personal Payment Methods task to enter the payment method and account information for
payees.

Further Considerations
Security
Oracle Fusion uses a common security model. This is a role-based access model and allows appropriate users to
view and edit areas depending on their roles. Refer to the Oracle Fusion Security documentation for further
information.

Reporting
Using the Oracle Fusion common reporting model, you can create reports using the appropriate reporting
infrastructure. Oracle has reporting tools, such as the Oracle Hyperion product, that you can use with any Oracle
application.

Oracle Fusion Human Capital Management: International Human Resources

Interfaces
For information about interfaces to and from Oracle Fusion HCM, including HCM extracts, file-based loader,
payroll batch loader, spreadsheet loaders, and the payroll outbound interface, refer to the Integrating with Oracle
HCM Cloud guide.

Further Reading
You can find the latest versions of Oracle Fusion documentation on the following web sites:

Applications Help at fusionhelp.oracle.com. Recommended help topics include:

o

Payroll Legislative Data: Explained

Define Elements, Balances, and Formulas: Overview

Payroll Product Usage: Critical Choices

Documentation at docs.oracle.com/cloud. Click Global Human Resources > Books tab.

Recommended guides include:
o

Implementing Global Human Resources

Securing Oracle HCM Cloud

Integrating with Oracle HCM Cloud

Using Functional Setup Manager

Using Global Payroll Interface

Using Global Human Resources

Oracle Fusion Human Capital Management:

Copyright 2014, Oracle and/or its affiliates. All rights reserved. This document is provided for information purposes only and the

International Human Resources

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Nov 2014

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