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Oracle Fusion Human Capital Management

(India): HR Implementation and Functional


Considerations
OR AC LE WHI TE P AP E R

N OVEMBER 2015

Disclaimer
The following is intended to outline our general product direction. It is intended for information
purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any
material, code, or functionality, and should not be relied upon in making purchasing decisions. The
development, release, and timing of any features or functionality described for Oracles products
remains at the sole discretion of Oracle.

ORACLE FUSION HUMAN CAPITAL MANAGEMENT (INDIA)

Table of Contents
Disclaimer

Introduction

Other Information Sources

Document Updates

Comments and Suggestions

Functional Setup

Open your Implementation Project

Verifying Geographies

Managing Product Extension and Address Validation settings

11

Legislative Data Groups

12

Legal Jurisdictions

13

Legal Authorities

16

Create Addresses for a Legal Authority

17

Add Legislative Categories to a Legal Authority

18

Legal Addresses

19

Legal Entities

20

Manage Legal Entity

21

Legal Entity HCM Information

22

Define HCM Information for Legal Employer

22

Define HCM Information for Payroll Statutory Unit

23

Legal Reporting Units

25

Legal Entity Registrations

27

1 | ENTER TITLE OF DOCUMENT HERE

Tax Reporting Units


Legal Reporting Unit HCM Information

29
29

Workforce Structures

33

Personal Data Setup

34

Addresses
Address Validation

34
34

Names

34

Legislative Information

35

Hiring a Worker

36

Maintaining Person and Employment Information

44

Person Information

44

Manage Person: Person Information Tab

45

Manage Person: Contacts Tab

46

Manage Person: Documents Tab

47

Manage Person: Disabilities Tab

48

Manage Person: Extra Information Tab

49

Employment Management

51

Manage Statutory Deduction Elements for Payroll Interface

53

Statutory Deductions Calculation Cards

55

Creating the Card

55

Cards for Taxes

57

Adding Calculation Cards for Social Insurance

59

Creating Associations

60

ORACLE FUSION HUMAN CAPITAL MANAGEMENT (INDIA)

Terminating a Worker

ORACLE FUSION HUMAN CAPITAL MANAGEMENT (INDIA)

62

Introduction
You need to define various legislative entities in Human Capital Management (HCM) to successfully
process HR and Payroll information. Most of these setups are statutory in nature and are required for
legal compliance and statutory reporting. This document describes the steps to define such information
in Oracle Fusion Human Capital Management in India. This includes the following:

Legislative Data Groups (LDG)

Legal Jurisdictions

Legal Addresses

Legal Entities (LE)

Legal Reporting Units

This document also describes the steps to perform the following tasks after the legislative entities are
set up:

Personal data setup

Hiring a Worker

Managing Person and Employment information

Managing statutory deductions Calculation Cards for persons

Terminating a Worker

The steps explained in this document are based on the following assumptions:

An implementation project is already created by a Workforce Deployment task assigned to it.

An Enterprise is already configured.

A cost structure is already configured.

ORACLE FUSION HUMAN CAPITAL MANAGEMENT (INDIA)

The India geographical structure and data values have either been set up manually using the
Manage Geographies task or been uploaded using the Load Geographies for India task.

Other Information Sources


Oracle Fusion Workforce Deployment Implementation Guide:
http://docs.oracle.com/cd/E28271_01/fusionapps.1111/e20379/toc.htm
Oracle Fusion On-Premise Quick Start Implementation Guide:
https://support.us.oracle.com/oip/faces/secure/km/DocumentDisplay.jspx?id=1395863.1
Oracle Fusion Global Payroll Interface Guide:
http://www.oracle.com/technetwork/fusion-apps/payrollinterfaceguider4-1873384.pdf

Document Updates
This document is based on the most current application release as of the documents publication date.
Content is updated only as needed to reflect major changes to existing features or when significant
new features are added to the localization. For this reason, it is possible that some minor user
interface differences may exist between the version being implemented and the version described in
this document.
Comments and Suggestions
Your comments are important to us. We encourage feedback about Oracle Fusion Applications Help
and guides.
Please send your suggestions to: oracle_fusion_applications_help_ww_grp@oracle.com.
You may also use the Send Feedback to Oracle link in the footer of Oracle Fusion Applications Help.

ORACLE FUSION HUMAN CAPITAL MANAGEMENT (INDIA)

Functional Setup
These tasks are performed in the Setup and Maintenance work area in Functional Setup Manager
(FSM) using an Application Implementation Consultant role. An Application Implementation
Consultant has access to all setup tasks across all products. The setup can be done

By opening the implementation project, or

By directly searching the tasks in the main page.

For some tasks, you must set the scope prior to running the task. For example, before running the
Manage Legal Entity HCM Information task, you must select the Legal Entity for which you are adding
information. Where necessary, the tasks in this document include instructions for setting the scope.

Open your Implementation Project


To open the implementation project you have created:
1.

Sign in to Oracle Fusion Applications using a role that has the profile of a super-user and
privileges to create all organizational structures:

ORACLE FUSION HUMAN CAPITAL MANAGEMENT (INDIA)

2.

Select Setup and Maintenance from the Navigator:

3.

Navigate to Tasks Implementations Manage Implementation Projects.

4.

Search for your project by entering the name of the project in the Name field. You can enter
% as a wild card in the search.

5.

The project opens with the associated task Workforce Deployment:

Note: Navigate through the Workforce Deployment task to setup different entities in the following
sections. Optionally, the setup can be done by querying and performing the tasks directly from the All
Tasks tab:

ORACLE FUSION HUMAN CAPITAL MANAGEMENT (INDIA)

ORACLE FUSION HUMAN CAPITAL MANAGEMENT (INDIA)

Verifying Geographies
Geographical information is used in Oracle Fusion Applications for address entry and validation, and
geography-based business processes, such as territory management and shipping. There are no
predefined geographies for India and you must define them yourself.
Please refer to the following article on My Oracle Support that explains how to load geography data:
Oracle Support Document 1341174.1 which can be found at:
https://support.oracle.com/epmos/faces/DocumentDisplay?id=1341174.1

After loading geography data, you can verify whether geography data has been uploaded successfully
from the Manage Geography Hierarchy screen.
1.

Search for and go to the task Manage Geographies

2.

Search for the geography code starting with IN

3.

Click the green checkmark for each type of geography data you want to verify

a.

Address Cleansing Defined

ORACLE FUSION HUMAN CAPITAL MANAGEMENT (INDIA)

4.

b.

Structure Defined

c.

Hierarchy Defined

d.

Validation defined

Verify the information on each page and make any necessary changes, then click Save and
Close.

ORACLE FUSION HUMAN CAPITAL MANAGEMENT (INDIA)

Managing Product Extension and Address Validation settings


Product Extension Settings
Before you use any localization, you must state the product extension which you will use for that
localization in HCM. Legislative features available for that country or territory for your implementation
depend on the product extension settings you make. This License setting impacts creation of
deduction card. Refer to Statutory Deductions Calculation Cards in this white paper.
Each localization has one of 3 possible settings:
Human Resources or None: This indicates that only the HR functionality of the localization will be
used.
Payroll Interface: This indicates that you will be using the HR functionality, and interfacing to a 3rd
party payroll via the inbuilt payroll interface
Payroll: This indicates that you plan to use the full HR and payroll functionality for the chosen
localization.
The default out-of-the-box value for Selected Extension is Human Resources or None.
For India, you can select from the following values for the Selected Extension:

Human Resources or None

Payroll Interface

The Payroll extension is not selectable for India.


Address Validation Settings
You can enable or disable Pin Code validation by managing address validation settings for India
legislation. Address style is defaulted and enforced to 'supplemental taxation and reporting address' for
India. User cannot modify the default address style.
Follow these steps to Product Extension and address validation settings.
1.

Select Manage Features by Country or Territory setup task.

2.

On Manage features by Country or Territory page, Search for India in the search box to
locate the correct row:

3.

Edit the Selected Extension list of values to set the correct extension you are using.

4.

Enable Address validation check box to enforce Pin Code validation

5.

Save

ORACLE FUSION HUMAN CAPITAL MANAGEMENT (INDIA)

Legislative Data Groups


Legislative Data Groups (LDG) are used to determine the legislation for Legal Employers. A Legislative
Data Group is a combination of a legislation, currency and costing structure.
You need to map the Legislative Data Group to a Payroll Statutory Unit so that all payroll objects such
as elements, payrolls, payment methods, etc. are created within the context of an LDG.
Use the following steps to define an LDG:
1.

Select Manage Legislative Data Groups in the implementation project task list:

2.

The Manage Legislative Data Groups screen appears. Click on the Create.

3.

The following screen appears:

4.

Enter a unique name for the Legislative Data Group you are creating.

ORACLE FUSION HUMAN CAPITAL MANAGEMENT (INDIA)

5.

Select Country as India.

6.

Select Currency as Indian Rupee.

7.

Select the Cost Allocation Structure. This is the cost structure you defined previously. The
cost structure is used to cost payroll payments and deductions.

8.

Click on the Submit button and Confirm.

The Legislative Data Group is created successfully.

Legal Jurisdictions
A Legal Jurisdiction is a physical territory (a group of countries, country, state, county, parish, etc.),
which comes under the purview of a legal authority under a specific type of legislation (French Labor
Law, Irish social welfare laws, Indian Income Tax). An example of a Legal Jurisdiction in India can be
Company Law.
Use the following steps to define Legal Jurisdictions:
1.

Select Manage Legal Jurisdictions in the implementation project task list:

2.

Click on Create :

3.

Enter the following details:

ORACLE FUSION HUMAN CAPITAL MANAGEMENT (INDIA)

a.

Enter a unique Name for the Legal Jurisdiction you are creating, for example
Professional Tax or Provident Fund.
Note: India Company Law and India Income Tax are the seeded Legal Jurisdictions
available for India.

b.

Search and select the Territory India with Geography type Country to create Legal
Jurisdictions for Provident Fund and Employee State Insurance. Select the territory
with appropriate Geography type for Professional Tax and labour Welfare Fund.

c.

Select the relevant Legislative Category.


Note: The following Legislative Categories are predefined for the India localization:

d.

Company Law
Income Tax
Provident Fund
Professional Tax
Labour Welfare Fund
Employee State Insurance

Indentifying Jurisdiction.
Notes:

The identifying jurisdiction is usually the first jurisdiction that the Legal Entity
must register with, in order to be recognized in its territory.
There should be at least one Identifying Jurisdiction for the country. Also, there
can be only one Identifying Jurisdiction for the country. This means that making
one jurisdiction identifying makes the current identifying jurisdiction nonidentifying.
India Company Law is the pre-defined Identifying Jurisdiction that is available in
India. Customer should not create any other jurisdiction as Identifying
Jurisdiction for India.
The Identifying Jurisdiction is automatically associated with the Legal Entity.

e.

Legal Entity Registration Code. Select the appropriate value, i.e. the code with which
the Legal Entity is registered with the jurisdiction. For example Corporate
Identification Number for Company Law and Permanent Account Number for
Income Tax.

f.

Legal Reporting Unit Registration Code. Select the Legal Reporting Unit Registration
Number. The following registration numbers have been predefined for the India
localization:

ESI Employer Number


LWF Employer Number
PF Establishment Number
PT Registration Number
TAN Number.

ORACLE FUSION HUMAN CAPITAL MANAGEMENT (INDIA)

Note: India Income Tax is the pre-defined Jurisdiction that is available in India.
The user does not need to define the jurisdiction with Legal Reporting Unit
Registration Code as TAN Number.
4.

Save your changes.

ORACLE FUSION HUMAN CAPITAL MANAGEMENT (INDIA)

Legal Authorities
A Legal Authority is a government or legal body that is charged with such powers as making laws or
levying and collecting fees/taxes. A Legal Authority in HCM is used to set up the agencies where
remittances are made and payroll information is reported.
For India, Legal Authorities can be the Ministry of Corporate Affairs, Income Tax Department,
Employee Provident Fund organization, Employee State Insurance Corporation, etc.
Use the following steps to define Legal Authorities:
1.

Select Manage Legal Authorities in the implementation project task list:

2.

Click on the Create button in the Manage Legal Authorities screen. The following screen
appears:

3.

Enter the following details:


a.

Enter the name of the Legal Authority, for example Employee Provident Fund
Organization.

b.

Select the appropriate Tax Authority Type. You can select from the following three
types:

ORACLE FUSION HUMAN CAPITAL MANAGEMENT (INDIA)

1.

Collecting

2.

Reporting

3.

Collecting and Reporting.

For example, the Employee Provident Fund Organization is of type Collecting and
Reporting.
4.

Save and Close the form.

Create Addresses for a Legal Authority


1.

Click on the Create under Addresses.

2.

Choose India as the Country and complete the address details:

3.

Add the purpose of the address by clicking on the + sign under Address Purposes.

4.

Select the purpose from the list of values, for example Payment.
Notes:

You can create more than one address with different purposes for a Legal Authority. For
example, one address for general correspondence and the other for tax remittances.

You can add more than one purpose to each address.

ORACLE FUSION HUMAN CAPITAL MANAGEMENT (INDIA)

Add Legislative Categories to a Legal Authority


1.

Click on the Create under Legislative Category.

2.

Select the Legislative Category from the single select choice list, for example Provident
Fund for the Employee Provident Fund Organization:

3.

Save and Close your work.

Note: You can add more than one Legislative Category to a Legal Authority.

ORACLE FUSION HUMAN CAPITAL MANAGEMENT (INDIA)

Legal Addresses
A Legal Address is the address registered in the Identifying Jurisdiction at registration time and is used
to help identify the Legal Entity. This address will be printed on legal documents when required.
A Legal Address is required when creating a Legal Entity.
Use the following steps to define a Legal Address:
1.

Select Manage Legal Addresses in the implementation project task list:

2.

Click on the Create button in Manage Legal Addresses screen.

3.

Enter the address details:

4.

Save and Close your work.

ORACLE FUSION HUMAN CAPITAL MANAGEMENT (INDIA)

Legal Entities
A Legal Entity is an entity unequivocally identified and given rights and responsibilities under
Commercial Law, through the registration with the countrys appropriate authority. Their rights and
responsibilities are enforceable through the judicial system.
When you set up Legal Entities, you can identify them as Legal Employers and Payroll Statutory Units,
which makes them available for use in HCM. Depending on how your organization is structured, you
may have a single Legal Entity that is both a Legal Employer and a Payroll Statutory Unit, or you may
have multiple Legal Entities, Legal Employers and Payroll Statutory Units.
Payroll Statutory Units enable you to group Legal Employers so that you can perform statutory
calculations, such as individual income tax calculations, at a higher level. For example, if multiple
Legal Employers belong to the same Payroll Statutory Unit and an employee receives income from
more than one employer within a month, you can calculate the persons individual income tax on the
aggregated income. Alternatively, if each of the Legal Employers belongs to a separate Payroll
Statutory Unit, then the persons individual income tax is calculated separately for each employer. A
Legal Employer can belong to only one Payroll Statutory Unit.
Note: For the India localization there is no requirement to group multiple Legal Employers under one
Payroll Statutory Unit for calculating the aggregate income tax across the Legal Employers. So in
India, every Legal Employer should be defined as a Payroll Statutory Unit.
Use the following steps to define a Legal Entity in HCM:
1.

Select Manage Legal Entity in the implementation project task list.

2.

Click on Go to Task. The following screen appears:

3.

Enter the following details:


a.

Select India as the Country.

b.

Enter the Name of the Legal Entity.

c.

Enter a unique number to identify the Legal Entity in the Legal Entity Identifier
field.

d.

Enter start and end dates.

ORACLE FUSION HUMAN CAPITAL MANAGEMENT (INDIA)

e.

In India, each Legal Entity is also a Payroll Statutory Unit. You therefore need to
make sure that the Payroll Statutory Unit check box is checked for each Legal
Entity you define for India.
Note: The Payroll Statutory Unit field will only be enabled if the Legal Entity is not a
Payroll Statutory Unit (Payroll Statutory Unit check box is unchecked). Since each
Legal Entity is also a Payroll Statutory Unit in India (Payroll Statutory Unit check box
is checked), there is no need to select the Payroll Statutory Unit from the list of
values.

4.

f.

Select the Legal Employer check box if the Legal Entity employs people.

g.

The Identifying Jurisdiction is automatically displayed. The India Company Law is


a Pre defined Identifying Jurisdiction for India.

h.

Select the Legal Address that was previously defined.

i.

Optionally, enter the Place of Registration.

j.

Enter the Corporate Identification Number.

k.

Enter the Legal Reporting Unit Registration Number.

Save and Close you work.

Notes:

What constitutes a Legal Employer will vary from country to country, but this must not be
confused with a Tax Reporting Unit, which is primarily used to report Tax Information. A Legal
Employer is the organization to which the contractual agreement exists with the person.

In most cases, a Legal Employer is also a Payroll Statutory Unit, but a Payroll Statutory Unit
can represent multiple Legal Employers. In Fusion Applications, the Payroll Statutory Unit will
be stored on the Payroll Payment Relationship.

A Legal Entity is also a Legal Reporting Unit unless there is a specific reporting requirement
with registrations which are not same as that of Legal Entity.

Manage Legal Entity


You need to define the scope before you can manage the available Legal Entities. You have to add
the required Legal Entities to scope before editing them using scope selection. This will also help you
create or manage other entities like Legal Reporting Units within the context of a Legal Entity.
1.

Select Manage Legal Entity in the implementation project task list.

2.

Click on Go To Task.

3.

Click on Select and Add.

4.

Select the Legal Entity created earlier.

ORACLE FUSION HUMAN CAPITAL MANAGEMENT (INDIA)

5.

This step is required when you are defining the scope for the first time. The Legal Entity can
be directly added to scope under the implementation project in subsequent scope selections:

Legal Entity HCM Information


A Legal Entity can also be a Legal Employer and/or a Payroll Statutory Unit. In such case you need to
define HCM information for the Legal Entity. This includes defining work day information, Legal
Employer information and the mapping of the Payroll Statutory Unit to a legislative Data Group.
Use the following steps to define HCM information for your Legal Entity:
1.

Select Manage Legal Entity HCM Information in the implementation project task list.

2.

Click on Go to Task.

Define HCM Information for Legal Employer

This will be enabled if the Legal Employer check box is selected while creating the Legal Entity.
1.

On the first tab, enter Legal Employer details and Legal Employer information.

2.

Optionally, enter workday information such as the start and end times of work, standard
working hours and frequency.

3.

In the Salary Level field, choose at what level the salary information will be assigned at: the
term or assignment level.

4.

Choose the Worker Number Generation method.

5.

Choose whether or not you allow employment terms to be overridden at the assignment level.

6.

Select the People Group Flexfield Structure (previously defined) that suits your Legal
Employer.

7.

Optionally, enter age related information for employment in fields Minimum Working Age,
Minimum Retirement Age, Maximum Retirement Age and Minimum Age of a Minor.

ORACLE FUSION HUMAN CAPITAL MANAGEMENT (INDIA)

8.

Select the Employment Model, i.e. the two or three-tier employment model with a single
assignment or multiple assignments. See the online help and documentation for more
information about the employment model and the critical choices you have to make.

9.

Click on Legal Employer Information and enter the following:

Registration Number

Corporate Identity Number

Base Business Number

10. Define notice period details of the different employee categories.


11. Choose the Employer Representative.

Define HCM Information for Payroll Statutory Unit

This will be enabled if the Payroll Statutory Unit check box was checked when creating the Legal
Entity.

ORACLE FUSION HUMAN CAPITAL MANAGEMENT (INDIA)

1.

Select the Payroll Statutory Unit tab.

2.

Select the previously defined Legislative Data Group in the Associated Legislative Data
Group list of values.

3.

Enter the Fiscal Year Start date.

4.

Submit to save.

Note:
You need to map the Legislative Data Group to a Payroll Statutory Unit so that all payroll objects like
elements, payrolls, payment methods, etc. are created within the context of a Legislative Data Group.
5.

Scroll down to the link for India-specific Payroll Statutory Unit Information. India-specific
Gratuity Information can be entered:

ORACLE FUSION HUMAN CAPITAL MANAGEMENT (INDIA)

Legal Reporting Units


Legal Reporting Units (LRUs) are the lowest level components of a legal structure that require
registration. A Legal Reporting Unit can be created whenever the Legal Entity needs to support several
registrations of the same kind or same Legislative Category (e.g. VAT).
The Legal Reporting Unit is created automatically when the Legal Employer is created. The Legal
Reporting Unit (terminology used in Fusion Financials Applications) is known as the Tax Reporting
Unit (TRU) in HCM.
Use the following steps to define a Legal Reporting Unit:
1.

Select Manage Legal Reporting Unit in the Define Legal Reporting Units for Human Capital
Management task group.

2.

Click on Go to Task.

3.

You will be prompted to Select and Add, or Create New in scope selection.

4.

You can Select and Add the previously created Legal Entity to edit further, or create a new
Legal Reporting Unit:

5.

When creating a LRU for Income Tax, select India in the Territory list of values. For other
types of LRUs (PF, PT, ESI and LWF), the territory would typically be one of the states in
India.

6.

Enter the Name of the Legal Reporting Unit, the Start Date and End Date.

7.

The Identifying Jurisdiction for the territory will be displayed by default when the Territory is
selected. Select a different Jurisdiction if required. For example, when creating a LRU for
Income Tax (with India as the territory), you need to change the default jurisdiction India
Company Law to India Income Tax.

8.

Enter the Legal Reporting Unit Registration Number.


Note: The label of this field will be different based on the selected jurisdiction.

9.

Select the Legal Address previously defined.

10. Optionally choose if this is the Main Legal Reporting Unit and associated effective start date.
11. Save and Close your work.

ORACLE FUSION HUMAN CAPITAL MANAGEMENT (INDIA)

Note: In most cases a Legal Entity is a Legal Reporting Unit and you do not need to create additional
ones. However, you may have to create additional Legal Reporting Units if there is a specific reporting
requirement where registrations are not the same as that of the Legal Entity, or just for convenience.

ORACLE FUSION HUMAN CAPITAL MANAGEMENT (INDIA)

Legal Entity Registrations


Legal Entities are connected to Legal Authorities through Legal Entity Registrations. A registration is
automatically created for the identifying jurisdiction you select when you create a Legal Entity. If the
Legal Entity will interact with other Legal Authorities, you must create additional registrations as
appropriate.
To define a legal entity registration:
1.

Select Define Legal Entities for Human Capital Management in the implementation project
task list

2.

On the Scope Selection window, choose Select and Add.

3.

Search for and select the Legal Entity you just created and then click Save and Close.

4.

Select Manage Legal Entity Registrations in the task list:

5.

The Manage Registrations page displays a list of registrations for this Legal Entity:

Note: A registration is automatically created for the Company Law jurisdiction when the Legal
Entity is created, based on the registration details provided.
6.

Click Create to add a registration:

7.

Enter the required information, noting the following:

When you select a jurisdiction, the Territory field is populated automatically.

ORACLE FUSION HUMAN CAPITAL MANAGEMENT (INDIA)

8.

The Issuing Legal Authority field displays a list of all Legal Authorities associated with
the legislative category of selected jurisdiction.

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

Save and Close your work.

Note: Each office/Legal Reporting Unit in India needs to be registered with the legal authorities in the
following five legislative categories:
1.

India Income Tax

2.

Professional Tax

3.

Employee Provident Fund

4.

Employee State Insurance

5.

Labour Welfare Fund

The following table explains the details of the legal registrations for India:
Name

Territory

Company Law

India

Legislative
Category
Company Law

India Income Tax

India

Income Tax

India Professional Tax

City, States
of India
India

Professional Tax

India

Employee State
Insurance
Labour Welfare Fund

India Provident Fund


India Employee State
Insurance
India Labor Welfare
Fund

State

ORACLE FUSION HUMAN CAPITAL MANAGEMENT (INDIA)

Provident Fund

Legal Entity
Registration Code
Corporate
Identification Number
Permanent Account
Number (PAN)
Legal Entity Registration
Number
Legal Entity Registration
Number
Legal Entity Registration
Number
Legal Entity Registration
Number

Legal Reporting Unit


Registration Code
Legal Reporting Unit
Registration Number
TAN Number
PT Registration
Number
PF Establishment
Code
ESI Employer Code
LWF Employer Code

Tax Reporting Units


Tax Reporting Units (TRUs) group employee records so that they can be reported together for tax or
social insurance purposes.
If LRUs are used in Oracle Fusion HCM Payroll for tax reporting purposes, then they are considered
Tax Reporting Units (TRUs). In the Legal Entity Configurator, when you create an LRU that belongs to
a PSU, the application automatically creates a TRU in HCM and associates it with the parent PSU.
When you create an LRU that belongs to a Legal Employer (that is not also a PSU), you must select a
parent PSU. In this way, TRUs are indirectly associated with a Legal Employer by association with a
PSU.

Legal Reporting Unit HCM Information


Additional information about Legal Reporting Units, referred to as Tax Reporting Units in the context of
HCM, is required for Oracle HCM processes.
To provide HCM information, follow these steps:
1.

Set the scope for this task by selecting the parent Legal Entity and then the Legal Reporting
Unit, as described in previous tasks.

2.

Select Manage Legal Reporting Unit HCM Information in the implementation project task
list:

3.

On the Manage Legal Reporting Unit HCM Information page, select the Tax Reporting
Unit and click next:

4.

Select Tax Reporting Unit Type and fill the respective information.

ORACLE FUSION HUMAN CAPITAL MANAGEMENT (INDIA)

Note: You need to create separate TRUs for each type.


5.

For TRU of type India Employee State Insurance, click on the Employee State Insurance link
and complete the employer representative information:

6.

For TRU of type India Provident Fund, click on the Provident Fund link and complete the
relevant information:

ORACLE FUSION HUMAN CAPITAL MANAGEMENT (INDIA)

7.

For TRU of type India Income Tax, click on the Income Tax link and enter the required
information:

8.

For TRU of type Professional Tax, click on the Professional Tax link and enter the required
information:

ORACLE FUSION HUMAN CAPITAL MANAGEMENT (INDIA)

Note: You need to create multiple TRUs of type Professional Tax for each state/city.
9.

For TRU of type Labour Welfare Fund, click on the Labour Welfare Fund link and enter the
required information:

ORACLE FUSION HUMAN CAPITAL MANAGEMENT (INDIA)

Workforce Structures
Workforce structure setup should be performed once organization structure setup is complete.
Workforce structures are used to:

Define additional partitioning of the workers within the organization, including divisions,
departments, and reporting establishments.

Assign roles to workers within the organization, including grades, jobs, and positions.

Set up actions and reasons that apply to the work relationship cycle of workers.

Note: No workforce structures are predefined for India.


The implementation team is responsible for defining the following workforce structures that apply to the
enterprise for which the setup is being done. Note that some workforce structures may not apply to
every enterprise.

Locations

Divisions

Departments

Reporting Establishments

Roles in Organization
o

Grades

Jobs

Positions

ORACLE FUSION HUMAN CAPITAL MANAGEMENT (INDIA)

Personal Data Setup


This section of the document describes the setup and validations that have been predefined for India
for the following person information:

Addresses

Names

Legislative information

Addresses
The format in which addresses must be entered for workers located in the India is predefined and
should not be modified during implementation. The predefined format enables the following fields

Country (Mandatory)

Address Line1 (Mandatory)

Address Line2

Address Line 3

City or Town (Mandatory)

Pin Code

State

The following figure shows how an Indian address is captured in the application:

Address Validation
Address validation is performed on the Pin Code, which must be in the NNNNNN format where N is a
number.
Note: You can control the Pin Code validation by enabling/disabling the address validation check box
for the India legislation using the Manage Features by Country or Territory task. Refer to Address
Validation Settings
Names

ORACLE FUSION HUMAN CAPITAL MANAGEMENT (INDIA)

The style in which names must be entered for workers India Legal Employers is predefined and should
not be modified during implementation. The following name style is used in Oracle Fusion Applications
for India:

Title

First Name

Middle Name

Last Name (Mandatory)

Suffix

Alias Name

The following figure shows how an Indian name is captured in the application:

Legislative Information
India specific legislative information can be captured for each person. None of these fields are
mandatory, and it is up to the enterprise to decide which data needs to be entered.
India supports the following legislative information:

Marital Status

Religion

Highest Education Level

The following figure shows how India legislative information is captured in the application:

ORACLE FUSION HUMAN CAPITAL MANAGEMENT (INDIA)

Hiring a Worker
Once the organizational and workforce structures have been defined by the implementation team, the
user is ready to manage workers data in the application. To perform tasks related to a person and
employee management, you would typically sign in to the application using a role connected to a
functional user, such a Human Resources Specialist, rather than to a member of the implementation
team:

The new hiring process is the first task in the workforce lifecycle. To hire an employee:
1.

Select New Person under Workforce Management in the Navigator:

ORACLE FUSION HUMAN CAPITAL MANAGEMENT (INDIA)

2.

In the task list on the left, select Hire an Employee:

Note: The other supported person types for the India are:

3.

Contingent Worker

Non Worker

Pending Worker

On the Identification page, provide the required information:

ORACLE FUSION HUMAN CAPITAL MANAGEMENT (INDIA)

Note: Consider the following on the Identification page:

4.

The Hire Reason field displays a list of valid action reasons defined in the hire action.

The Legal Employer field displays a list of all legal employers that have been set up
previously.

The Name Style is determined by the predefined name style for India.

The Gender lookup has the India-specific value Transgender in addition to Male and
Female.

There are no predefined National Identifier types for the India localization.

On the Person Information page, provide the required information:

ORACLE FUSION HUMAN CAPITAL MANAGEMENT (INDIA)

Note the following:

An address is required and must conform to the predefined India address format.

The following additional information is optional for the India localization:


o

Phone and E-Mail

ORACLE FUSION HUMAN CAPITAL MANAGEMENT (INDIA)


5.

6.

7.

Marital Status, Religion and Highest Education Level in the India-specific


Legislative Information section

Citizenship and Visa Information

Contacts

For India the Regular Passport Type has been predefined. This is an extensible lookup
so you can add additional passport types if required.

Capture the following additional information for a passport:

Name as in Passport

ECNR(Emigration Clearance Not Required)Required

Capture Guardian information if the contact is a minor

Click on Additional information

Select India as the Contact Information Category

The following Guardian information can be captured:

On the Employment Information page, provide the required information:

ORACLE FUSION HUMAN CAPITAL MANAGEMENT (INDIA)

ORACLE FUSION HUMAN CAPITAL MANAGEMENT (INDIA)

Note the following:

Because the employer in this example uses the 2-tier employment model (as selected in
the Legal Employer setup), employment information is entered only at the assignment
level. If the employer uses a 3-tier model, then information must be entered at both the
terms and assignment levels. To enter information at the term level, click the Employment
Terms tab.

The Business Unit, Job, Grade, Department and Location must have been previously
defined. The Business Unit you select determines which jobs, grades, and departments
you can select.

8.

Add any additional roles on the Roles page.

9.

Review the information captured for the person on the Review Page.

10. Submit.

ORACLE FUSION HUMAN CAPITAL MANAGEMENT (INDIA)

11. An employees record gets generated with a person number


12. Use the Person Management transaction to edit the existing information or enter additional
information for the person.

ORACLE FUSION HUMAN CAPITAL MANAGEMENT (INDIA)

Maintaining Person and Employment Information


Once the new hiring process is complete, the person is recorded in the system. You can modify person
and employment information as needed, and add data not entered in the new hire process. Some
information, such as birth and disability information cannot be entered in the new hire process and
must be entered and maintained in the Person Management transaction.
Person Information
To maintain person information:
1.

Select Person Management under Workforce Management in the Navigator:

2.

Search for and select the person record:

ORACLE FUSION HUMAN CAPITAL MANAGEMENT (INDIA)

3.

Navigate through the various tabs to view and manage the complete set of person
information.

4.

Select either Edit > Correct to correct the existing information from the start date, or Edit >
Update to modify the information from the current effective date retaining the previous
information.

Manage Person: Person Information Tab

You can modify the previously entered personal information and also enter the following new
information:

Date of Death

Country of Birth

Region of Birth

Town of Birth

Correspondence Language

Blood Type

Add a display picture of the employee

ORACLE FUSION HUMAN CAPITAL MANAGEMENT (INDIA)

Note the following:

You can create multiple home and/or mailing addresses for the employee.

One of these addresses can be specified as the primary mailing address.

Manage Person: Contacts Tab

On the Contacts tab you can enter and maintain contact information for employees, including
emergency contacts:

You have two options to create new contacts:


1.

Create a new person as a contact by clicking on the Create button on the Contacts tab:

ORACLE FUSION HUMAN CAPITAL MANAGEMENT (INDIA)

2.

Click on the Create from Existing Person button to create a new contact by selecting an
existing person from the database:

Note the following:

Choose if the contact is emergency contact or not.

All the addresses of the employees are shown under Addresses. You can select one
of employees addresses as the address of the contact. Alternatively, you can enter a
different address for the contact.

Manage Person: Documents Tab

On the Documents tab you can enter details of the persons citizenships, drivers licenses, passports
and visas and permits. You can also upload additional reference documents in the Documents of
Record section:

ORACLE FUSION HUMAN CAPITAL MANAGEMENT (INDIA)

Manage Person: Disabilities Tab

On the Disabilities tab you can enter details related to the persons disabilities:

ORACLE FUSION HUMAN CAPITAL MANAGEMENT (INDIA)

Note the following:

After selecting India as the Context Value in the Additional Information section on the
Legislative Information tab, you can specify whether or not a disability certificate is available
for the disability that is recorded for the person.

Manage Person: Extra Information Tab

This tab is used to capture additional country-specific person information.


India Miscellaneous Information
You can capture the following details after clicking on the India Miscellaneous Information link:

Community

Caste

Height

Weight

Ex-Service Person (Yes/No)

Residential Status

PAN Reference Number (if the person has no PAN Number but has applied for one)

ORACLE FUSION HUMAN CAPITAL MANAGEMENT (INDIA)

India Nomination Information


After clicking on the India Nomination Information link, you can enter nomination details for different
types of benefits, such as PF, Gratuity, and Superannuation:

ORACLE FUSION HUMAN CAPITAL MANAGEMENT (INDIA)

Employment Management
The Person Management work area also provides tasks for maintaining employment information:

From here, you can modify an existing instance of employment or add a new instance if, for example,
an employee has a job change.

ORACLE FUSION HUMAN CAPITAL MANAGEMENT (INDIA)

ORACLE FUSION HUMAN CAPITAL MANAGEMENT (INDIA)

Manage Statutory Deduction Elements for Payroll Interface


When using Payroll Interface as the Selected Extension, you must make sure you have created
element eligibility for the Statutory Deductions element. The element entry for the Statutory
Deductions element will be created for new employees during the new hire task, and will use the
Eligibility Criteria data you have defined as part your element eligibility creation. Steps to create
element eligibility are:
1.

Navigate to the Payroll Calculations work area.

2.

Select the Manage Elements task under the Earnings and Deductions task
header.

3.

Enter Statutory Deductions in the Element Name field.

4.

Select the Legislative Data Group that is set for the Legal Employer in India.

5.

Select Search button:

6.

Click on the Statutory Deductions element name in the search results.

7.

On the next screen, click the Edit button and select Correct:

ORACLE FUSION HUMAN CAPITAL MANAGEMENT (INDIA)

8.

Select Element Eligibility.

9.

Click on the Actions button and select Create Element Eligibility:

10. Enter a unique Element Eligibility Name and complete the information on the
General Information, Input Values and Costing tabs:

11. Submit.

ORACLE FUSION HUMAN CAPITAL MANAGEMENT (INDIA)

Statutory Deductions Calculation Cards


A Statutory Deductions calculation card captures values required for calculating and processing payroll
deductions. To support the Payroll Interface, you must create a Statutory Deductions calculation card
for each person for whom payroll deductions will be processed.
Note: A Statutory Deductions calculation card gets created automatically for a person if product
extension is set to Payroll Interface.
Creating the Card
To create a personal calculation card:
1.

Sign In using a role that has privileges to manage payroll information:

2.

Select Person Management from the Navigator:

ORACLE FUSION HUMAN CAPITAL MANAGEMENT (INDIA)

3.

Search for and select the employee for whom you want to create the card.

4.

Select the Manage Payroll Calculation Information task in the Payroll task list.

5.

Click the Create button on the Manage Payroll Calculation Information tab:

6.

Enter the Effective Date and select Deduction Information in the Name field to define data
needed for calculating and reporting Income Tax, Professional Tax, Provident Fund and
Labour Welfare Fund deductions:

ORACLE FUSION HUMAN CAPITAL MANAGEMENT (INDIA)

Note the following:


Cards for Taxes
To add the required information for processing Income Tax and Professional Tax deductions:
1.

In the Calculation Card Overview pane, select Income Tax:

2.

You can enter house rent details to be considered for income tax calculation on the House
Rent Details tab:

ORACLE FUSION HUMAN CAPITAL MANAGEMENT (INDIA)

3.

You can enter information regarding various investments that are eligible for income tax
deduction on the Chapter VIA Deductions tab:

4.

You can enter income from house property and also other income to be considered for
income tax calculation on the Other Income tab:

ORACLE FUSION HUMAN CAPITAL MANAGEMENT (INDIA)

5.

Enter previous employment information provided by the employee on the Previous


Employment tab:

6.

In the Calculation Card Overview pane, select Professional Tax to specify if the employee is
exempted from Professional Tax, as well as the exemption reason:

Adding Calculation Cards for Social Insurance


To add the required information for processing Provident Fund and Labour Welfare Fund deductions:
1.

In the Calculation Card Overview pane, select Provident Fund.

2.

You can enter Provident Fund details and any additional Voluntary Provident Fund
contribution details for the employee.

3.

You can also choose the calculation base for Provident Fund and EPS (Employees Pension
Scheme) contributions, which can be either actual salary or the statutory limit:

ORACLE FUSION HUMAN CAPITAL MANAGEMENT (INDIA)

4.

In the Calculation Card Overview pane, select Labour Welfare Fund to specify the eligibility
of the employee for the Labour Welfare Fund:

Creating Associations
For the India localization you must associate a TRU with the employees employment terms or
assignment for each component of the deduction card.
To define associations:
1.

In the Calculation Card Overview pane, click Associations.

2.

Click Create in the Associations section.

3.

On the Create Association window, select the Tax Reporting Unit responsible for reporting
the deductions for this person:

ORACLE FUSION HUMAN CAPITAL MANAGEMENT (INDIA)

4.

Associate a Tax Reporting Unit for each deduction component of the deduction card.

ORACLE FUSION HUMAN CAPITAL MANAGEMENT (INDIA)

Terminating a Worker
When a persons employment ends, the work relationship must be terminated. To terminate a work
relationship:
1.

Select Manage Work Relationship in the Person Management work area:

2.

On the Manage Work Relationship page, select Terminate from the Actions menu:

ORACLE FUSION HUMAN CAPITAL MANAGEMENT (INDIA)

3.

On the Terminate Work Relationship page, enter the details of the termination, including the
termination reason:

ORACLE FUSION HUMAN CAPITAL MANAGEMENT (INDIA)

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ORACLE FUSION HUMAN CAPITAL MANAGEMENT (INDIA)

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Oracle Fusion HCM (India): HR Setup and Functional Considerations
November 2015
Author: [OPTIONAL]
Contributing Authors: [OPTIONAL]

ORACLE FUSION HUMAN CAPITAL MANAGEMENT (INDIA)