Oracle Fusion HRMS For SA HR Setup White Paper

An Oracle White Paper
July 2013
Oracle Fusion HRMS (Saudi Arabia):

HR Implementation and Functional
Considerations
Oracle Fusion HRMS (Saudi Arabia): HR Implementation and Functional Considerations
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.
Introduction ...................................................................................................................1
Whats in this Document ...........................................................................................1
Other Information Sources ........................................................................................1
Document Updates ...................................................................................................2
Comments and Suggestions .....................................................................................2
Organization Structures ................................................................................................3
Introduction ...............................................................................................................3
Enterprise ..................................................................................................................3
Creating an Implementation Project ..........................................................................3
Verifying Geographies ...............................................................................................5
Defining Enterprise Structures ..................................................................................8
Legal Jurisdictions .....................................................................................................8
Legal Addresses .....................................................................................................10
Legal Authorities .....................................................................................................10
Legislative Data Groups ..........................................................................................11
Legal Entities ...........................................................................................................13
Legal Entity Registrations .......................................................................................15
Legal Entity HCM Information for Legal Employers and Payroll Statutory Units .....17
Legal Reporting Units (Rel 7 and above) ................................................................18
Business Units ........................................................................................................22
Workforce Structures ..................................................................................................23
Locations .................................................................................................................23
Divisions ..................................................................................................................24
Departments ............................................................................................................25
Reporting Establishments .......................................................................................27
Saudi Employment Office ........................................................................................29
Roles in Organization ..............................................................................................30
Actions Reasons .....................................................................................................35
Managing Workforce Structures ..............................................................................37
Personal Data Setup ...................................................................................................39
Addresses ...............................................................................................................39
Names .....................................................................................................................40
Legislative Information ............................................................................................40
National Identifiers ..................................................................................................41
Contacts ..................................................................................................................42
Visa .........................................................................................................................42
Disability ..................................................................................................................42
Contracts .................................................................................................................43
Hiring a Worker ...........................................................................................................44

Maintaining Person and Employment Information ..................................................48
Additional Information for Payroll Interface .................................................................55
Deduction Cards .....................................................................................................56
Employer Deduction Cards .....................................................................................56
Employee Deduction Cards ....................................................................................65
Banking Setup .............................................................................................................81
Banks ......................................................................................................................81
Bank Branches ........................................................................................................81
Bank Accounts ........................................................................................................83
Organization Payment Methods ..............................................................................83
Consolidation Groups and Payroll Definitions .............................................................88
Consolidation Groups ..............................................................................................88
Payroll Definitions ...................................................................................................88
Person Payment Information .......................................................................................91
Assigning a Payroll to the Employee .......................................................................91
Assigning Payment Methods to the Employee ........................................................92
Elements and Compensation ......................................................................................94
Elements and Element Templates ..........................................................................94
Salary Basis and Compensation .............................................................................99
Conclusion ................................................................................................................106
Glossary ....................................................................................................................106
Introduction
This paper identifies and describes HR setup tasks for Oracle Fusion Human Resources Management System for
Saudi Arabia.
Whats in this Document

This document is intended to support the implementation team in understanding:
The organizational structures that need to be defined to manage HR processes for Saudi.
The Saudi-specific data that needs to be provided.
Where predefined Saudi-specific data can be integrated with customer-specific data.
The data that needs to be defined to hire and maintain a Saudi worker.
The Saudi -specific business rules that have been implemented.
The HR processes that can be executed for Saudi.
Information required to support interfacing or transferring data to a third-party payroll system.
The migration process from a legacy system, by identifying the Saudi-specific fields that need to be populated by
such migration.
This documentation can also be beneficial to end users who run application processes after implementation.
Note: This document should not be considered a comprehensive guide for HR implementations. The
focus of this document is Saudi-specific processes and information. For information about generic tasks,
the implementation team should refer to documentation listed in the following section.
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 Cloud Quick Start Implementation Guide:
https://support.us.oracle.com/oip/faces/secure/km/DocumentDisplay.jspx?id=1471160.1
Oracle Fusion Global Payroll User Guide:
http://www.oracle.com/technetwork/fusion-apps/payrolluserguider4-1873385.pdf
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 as needed only to reflect major changes to existing features or when significant new features are added to
the Saudi localization. For this reason, it is possible that some minor UI 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.
Organization Structures
Introduction
Before a customer can hire a Saudi worker or run any country-specific process, the implementation
team must set up the organization structures required for the management of HR processes. You can
perform all setup tasks using the Functional Setup Manager (FSM).
The following sections describe how to create an implementation project and define enterprise
structures and related objects required for Saudi implementations. These structures, which typically
contain country-specific information, must be defined before you can create application users.
Note: For the complete set of setup tasks required for a full implementation, please refer to
the documents listed under Other Information Sources.
Enterprise
The Enterprise classification represents the top structure in the organization that supports partitioning
requirements for Oracle Fusion applications. A person exists within the context of an enterprise. If a
person is associated with two enterprises, the person has two person records.
Since there is no concept of legislation at the enterprise level, no Saudi-specific attributes are stored at
this level; these attributes must be stored at the level of other structures such as legal entity.
This document does not describe enterprise setup since this structure is defined at a higher level than
HR and is used across product lines.
Creating an Implementation Project

Setup tasks for organization structures should be defined in an implementation project. Follow these
steps to create an implementation project:
1.
Sign in to the Oracle Fusion application using a role that has the profile of a super-user and
privileges to create all organizational structures:
2.
Select Setup and Maintenance from the Navigator:
3.
On the Implementation Projects tab, click Create:
4.
On the Create Implementation Project page, enter the required information and click Next:
5.
Select Workforce Deployment as the offering, since this parent project contains all the tasks
needed to set up HCM organizational structures:
6.
Click Save and Open Project.
Verifying Geographies
Geography information is used in Oracle Fusion applications for address entry and geography-based
business processes, such as territory management and shipping. Before defining enterprise structures,
the implementation team must verify predefined geographies and load any additionally required local
geographies.
Follow these steps to verify predefined geographies:
1.
Select Manage Geographies in the implementation project checklist:
2.
On the Manage Geographies page, select SA and click Search to view the predefined geography
setup and content for Saudi Arabia:
3.
Click the green checkmark for each type of geography data you want to verify:
Address Cleansing Defined:
Structure Defined:
Hierarchy Defined:
4.
Validation Defined:
Verify the information on each page and make any necessary changes, then click Save and Close.
Implementation teams can create new geographies by importing data through interface tables. You can
load data into the interface tables using the Oracle Fusion file-based data import process or the tool of
your choice.
Defining Enterprise Structures

You can now begin the process of defining enterprise structures. All setup tasks are located in the
implementation project task list under Workforce Deployment > Define Common Applications
Configuration for Human Capital Management > Define Enterprise Structures for Human Capital
Management, as shown here:
Legal Jurisdictions
All legal entities must be registered against a jurisdiction that is governed by a legal authority. A legal
jurisdiction is a combination of the legislative category (such as labour law, transaction tax law, or
income tax law) and the physical territory (such as a group of countries, a country, a state, or a county)
to which legal rules are grounded. A tax jurisdiction is a geographic area where a tax is levied by a
specific tax authority. Jurisdictions must be set up before creating registrations, because a jurisdiction is
required in the registration process. A jurisdiction must also have a start date and end date to show
when the jurisdiction is effective and when you can register against it. For Saudi, there is a predefined
jurisdiction called Saudi Arabia Social Insurance.
1.
Select Manage Legal Jurisdictions in the implementation project task list:
2.
On the Manage Legal Jurisdictions page, search for Saudi Arabia Social Insurance.
3.
Ensure that the Identifying field has the value Yes:
Note: An identifying jurisdiction is the one that is automatically associated with all legal entities
created for the territory. It represents the jurisdiction that a company has to register with when
first created. Registration information for the identifying jurisdiction is mandatory when creating a
Legal Employer. An identifying jurisdiction needs to be defined in the implementation phase.
You can create additional jurisdictions as needed using the Manage Legal Jurisdictions task.
Legal Addresses
A legal address is the address of record for an entity. For example, the legal address of a legal authority
is used in communications with that authority. No legal addresses are predefined for the Saudi. You
must create legal addresses for all organizational units of the enterprise.
To define legal addresses:
1.
Select Manage Legal Addresses in the implementation project task list:
2.
On the Manage Legal Addresses page, click Create.
3.
On the Location Create page, enter the address information and click OK:
Legal Authorities
Legal authorities are the government entities with which an enterprise interacts, for example to send
legal reports. No legal authorities are predefined for Saudi. You must create a legal authority for each
government entity, such as a General Office for Social Insurance (GOSI) office, that has a relationship
with the enterprise. Later, you will register each legal entity you create unit with a legal authority.
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To define legal authorities:

1.
Select Manage Legal Authorities in the implementation project task list:
2.
On the Manage Legal Authorities page, click Create.
3.
On the Create Legal Authority page:
4.
Select the Tax Authority Type based on the type of interaction. Typically, this is set to
Collecting and Reporting.
Add one or more addresses.
Add one or more legislative categories, such as the predefined Social Insurance category.
This establishes a link between the legal authority and all jurisdictions associated with the
selected legislative category.
Click Save and Close.
Legislative Data Groups

A legislative data group (LDG) defines the payroll and related data partition context for a user,
allowing customers to partition their payroll data. Although an LDG is not an organization, it is
included here for completeness.
You can partition payroll data at any of the following levels that are relevant to an enterprise:
Payroll statutory unit (PSU), where one LDG is required per PSU.
Country, where one LDG is required per legislation with one or more PSUs.
Between country and PSU, where a more complex setup is required. For example, partitioning at this
level is appropriate when multiple LDGs are required per legislation with one or more PSUs.
11
An LDG must be defined in an HR-only implementation if the customer plans to export employeelevel information, such as payment methods or salary, to a third-party payroll system.
If an LDG is associated with a PSU, then whenever a user creates payroll data, the LDG can be
derived from the payroll relationship for the transaction via the PSU association.
To define an LDG:
1.
Select Manage Legislative Data Groups in the implementation project task list:
2.
On the Manage Legislative Data Groups page, click Create.
3.
On the Create Legislative Data Group page, provide the required information and click Submit:
12
Legal Entities
A legal entity is an entity unequivocally identified and given rights and responsibilities under
Commercial Law, through registration with the territorys appropriate authority. Legal entities have the
responsibility to account for themselves (balance sheet, income statement, specified reports) to
company regulators, taxation authorities, and owners according to rules specified in the relevant
legislation.
Legal Employers and Payroll Statutory Units (PSUs): Overview
Oracle Fusion HRMS recognizes different types of legal entities:
A legal employer is a legal entity that employs workers.
A payroll statutory unit (PSU) is a legal entity that is responsible for paying workers, including the
payment of payroll tax and social insurance. A PSU can pay and report on payroll tax and social
insurance on behalf of one or many legal entities, depending on the structure of your enterprise.
PSUs provide a way to group legal employers so that certain statutory calculations, such as court orders
and some taxes, can be performed at a higher level. A legal employer can belong to only one PSU, and
the PSU represents the highest level of aggregation for a person. No balances are aggregated across
PSUs.
When defining a legal entity, you must consider the context in which it is to be used:
If it is to be used in an HCM context, designate it as a legal employer. In an HCM implementation, it

is mandatory to define legal employers.
If it is to be used in a Payroll context, designate it as a PSU.
You can define a legal entity that is both a legal employer and a PSU.
If multiple legal employers need to be grouped together for tax reporting purposes, you can associate
them all with a single PSU. If legal employers do not report together, they must not share a PSU.
No legal entities are predefined for Saudi. You must create all legal entities that apply to the enterprise
you are setting up.
Legal Reporting Units and Tax Reporting Units: Overview
A legal reporting unit (LRU) is the lowest level component of a legal structure that requires
registrations. It is used to group workers for the purpose of tax and social insurance reporting or to
represent a part of your enterprise with a specific statutory or tax reporting obligation.
If LRUs are used in Oracle Fusion HRMS 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.
13
In HRMS Saudi the TRU get automatically created when the users create a PSU. The is no requirement
to create TRUs as there is no statutory requirement to report at this level.
Organization Structure Models Supported by Saudi Localization
The sections that follow describe how to define a set of organizational units that comprise the
organization structure required to manage HR processes for Saudi. Each enterprise can combine these
organizational units in a different way in order to set up the organizational model that best fits their
business needs. Before you begin creating organizational units, it is helpful to understand the
organization structure models supported by the Saudi localization.
The Saudi Localization supports one to one configuration between the Enterprise and PSU with one
legal employer.
Creating Legal Entities
To define legal entities:

1.
Select Manage Legal Entities in the implementation project task list:
2.
Click Create to display the Create Legal Entity page:
14
3.
4.
Provide the required information, noting the following:
If a legal entity is not designated as a payroll statutory unit, you must select an existing payroll
statutory unit to which it belongs.
The Legal Entity Identifier is an internal code.
An identifying jurisdiction must have been previously defined.
You must have previously defined the legal address for the legal entity.
The type of registration information required is based on the Registration Code Assignment
information you defined when you created the selected jurisdiction. In this case, GOSI
Number and Legal Entity Registration Number are required.
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.
Set the scope for this task by selecting Define Legal Entities for Human Capital Management
in the implementation project task list:
2.
On the Scope Selection window, select Select and Add:
15
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.
The Manage Registrations page displays a list of registrations for this legal entity:
Note: A registration was automatically created for the Saudi Social Insurance jurisdiction when the
legal entity was created, based on the registration details provided.
5.
Click Create to add a registration:
6.
Enter the required information, noting the following:
7.
When you select a jurisdiction, the Territory field is populated automatically.
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.
16
Legal Entity HCM Information for Legal Employers and Payroll Statutory Units
Additional information about legal entities is required for Oracle HCM processes.
To provide HCM information:
1.
Set the scope for this task by selecting the legal entity, as you did in Step 1 of the previous task.
2.
Select Manage Legal Entity HCM Information in the implementation project task list:
3.
If the entity is a legal employer, complete the fields on the Legal Employer tab and Saudi Arabia
Legal Employer Information tab:
Note: The Employment Model selection is critical. The Saudi localization supports all delivered
employment models. Refer to the section on employment models in chapter Define Enterprise
Structures for Human Capital Management of Oracle Fusion Applications Workforce
Development Implementation Guide
(http://docs.oracle.com/cd/E28271_01/fusionapps.1111/e20380/toc.htm).
Full contract functionality is available only if you select the 2-Tier Single Contract - Single
Assignment Model or a 3-tier employment model.
4.
If the legal entity is also a PSU, complete the fields on the Payroll Statutory Details and Saudi
Arabia Payroll Statutory Unit Information tabs.
17
5.
Complete the fields on this tab and click Submit.

Note:
The Fiscal Year Start for a Saudi customer must be January 1st of the year the enterprise is
going live on Oracle Fusion HRMS.
The LDG is associated at the at the PSU level.
For more information about legal entities, refer to the Define Enterprise Structures for Human Capital
Management chapter, Oracle Fusion Applications Workforce Deployment Implementation Guide,
Oracle Fusion Applications Workforce Development Implementation Guide, or Oracle Fusion
Applications Compensation Management Implementation Guide.
Legal Reporting Units (Rel 7 and above)

To create an LRU (or a TRU, as it is referred to in HCM):
1.
To set the scope for this task, select Define Legal Reporting Units for Human Capital
Management in the task list::
18
2.
On the Scope Selection window, for Legal Reporting Unit select the Select and Add value,
then click Apply and Go to Task button.
19
This LRU is designated as the main legal reporting unit for the legal entity:
3.
To create a second LRU for this legal entity, enter the required information on the Create
Legal Reporting Unit page:
4.
20
Legal Reporting Unit HCM Information
Additional information about legal reporting units, referred to as tax reporting units in this context, is
required for Oracle HCM processes.
To provide HCM information:
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.
Review the general tax reporting unit details:
21
Business Units
Oracle Fusion HRMS uses the business unit classification to group sets of data that are enabled with
the Set ID functionality. Thus, when you associate a business unit with a default set, this default set is
inherited by every entity connected to the business unit.
No Saudi-specific data are required or captured at this level. However, it is mandatory to assign a
business unit to a worker in the new hire process, so business units must be created for the enterprise.
To create a business unit:
1.
Select Define Business Units for Human Capital Management in the implementation project
task list:
2.
Click Create.
3.
On the Create Business Unit page, provide the required information:
Note: You must have previously created the location and default set. (Default sets are created
using the Manage Reference Data Sets task. For more information about business units and default
sets, refer to the Oracle Fusion Workforce Deployment Implementation Guide:
http://docs.oracle.com/cd/E28271_01/fusionapps.1111/e20379/toc.htm).
4.
22
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.
No workforce structures are predefined for Saudi. The implementation team is responsible for defining
all the 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
The first workforce structures to define are the locations where business is conducted or which are of
interest to the business. Locations can store information about the physical location of a workforce
structure and can be assigned to workers in order to define their physical work location.
To create or manage locations:
1.
Select Manage Locations in the implementation project task list:
2.
Click Create.
3.
On the Create Location page, provide the required information and click Submit:
23
Divisions
A division is a high-level organization that supports functionality for roll-up reporting. Division exists
above a legal entity, but below an enterprise. As there is no concept of legislation at the division level,
no Saudi-specific attributes are stored here.
To create divisions:
1.
Select Manage Divisions in the implementation project task list:
2.
Click Create.
3.
On the Create Division page, enter the required information:
24
Note: In the sample screen above, the division is associated with the previously created location. If
you are setting up an HR-only implementation, it is not mandatory to create divisions for Saudi.
4.
Click Next to provide additional division details, and then review and submit.
Departments
A department is a division of a business enterprise dealing with a particular area or activity. You can
assign workers to departments.
No data is required or captured at this level for Saudi but implementation teams can create a
department structure for an enterprise in the organizational structure setup phase of the project.
25
To create departments:
1.
Select Manage Departments in the implementation project task list:
2.
Click Create.
3.
On the Create Department page, provide the required information:
Note: In the sample screen above, a location has been selected. Every time this department is
connected to another entity, such as a worker, this location will also be connected to that entity by
default.
4.
Click Next to provide additional department details, and then review and submit.
26
Reporting Establishments
A reporting establishment represents an organizational unit used for statutory reporting, other than tax
or social insurance reporting. You can create a new reporting establishment from scratch or you can
select an existing TRU and define it as a reporting establishment. (From Release7 you will no longer be
able to create a reporting establishment from a previously created TRU)
Reporting establishments are supported but not required in a Saudi implementation.
To create reporting establishments:
1.
Select Manage Reporting Establishments in the implementation project task list:
2.
Click Create.
3.
On the Create Reporting Establishment page, select Create New to create a new reporting
establishment or choose Select an existing organization to define as a Reporting
Establishment if the reporting establishment is an existing TRU (From Release7 onwards, you
are no longer able to create a reporting establishment from a previously created TRU).
If you choose to select an existing organization, the Search: Organization section is displayed:
27
Select Tax Reporting Unit in the Classification field and click Search. Then click Select
Organization for the TRU you want to work with.
4.
In the Reporting Establishment Description section, provide the required information:
5.
Click Next to provide additional details, and then review and submit.
28
Saudi Employment Office

An Employment Office represents an organization that is used to register employees with disabilities.
In HRMS Saudi, no predefined Employment Offices are delivered and it is up to the user to create the
Employment Offices they wish.
To create Employment Offices:
1.
Select Manage Employment Office Lookups for Saudi Arabia from the implementation
project task list
2.
Click New:
3.
Create a lookup code for each Employment Office you wish to create:
Note: Leave the Tag field blank.
29
Roles in Organization
A set of workforce structures, including grades, jobs, and positions, must be defined during
implementation. These structures are used to assign a role to each worker in the organization.
Grades
A grade defines the relative rank, level, or status of a worker. It is one of the key building blocks used
for managing compensation.
To create grades:
1.
Select Manage Grades in the implementation project task list:
2.
Click Create.
3.
On the Create Grade page, provide the required information:
Note: In the sample screen above, this grade is associated with the business unit created earlier.
4.
Click Next to define the order of progression between grades:
30
5.
Click Next to define grade rates:
Grade rates can be used to define pay values for grades in a legislative data group (country). You
can add a rate that was previously defined or create a new rate:
31
Jobs
A job defines a set of roles or duties that are linked to a worker. Each enterprise should create the job
codes that are suited for its organization.
To create jobs:
1.
Select Manage Job in the implementation project task list:
2.
Click Create.
3.
On the Create Job page, provide the required information:
Note: In the sample screen above, the selected Job Set is the same as the default set selected for
the business unit. Thus, this job cannot be assigned to workers who belong to a business unit that
is connected to a different job set.
4.
Click Next to enter job details:
32
Note: No Saudi-specific data is required or captured in the Job Details page or other setup pages
for jobs.
Positions
A position is a specific instance of a job in a department or business unit. The use of jobs or jobs and
positions varies by industry and customer requirements.
To create positions:
1.
Select Manage Positions in the implementation project task list:
2.
Click Create.
3.
On the Create Position page, provide the required information:
33
Note: In the sample screen above, the position is associated with the previously created business
unit. The business unit you select here determines which jobs, departments, and location values
can be selected on subsequent screens.
4.
Click Next to provide additional position details:
Note: On this page, you can specify optional attributes, such as Full-Time or Part-Time, Regular
or Temporary, Entry Grade and Entry Step. You can also add previously defined grades that are
valid for this position. No Saudi-specific data is required or captured in the Position Details page
or other setup pages for positions.
34
Actions Reasons
Action reasons are useful primarily for analysis and reporting purposes. They provide information
about when or why a specific action, such as termination of a worker, can be taken. They can also be
used to trigger a process based on the value of the action reason. For example, a specific termination
reason might trigger the payment of an indemnity. Action reasons are often used in report fields or
selection criteria.
Several action reasons are predefined in the system. Although action reasons are not workforce
structures, the implementation team may want to create additional ones to suit the business needs of
the enterprise.
To view and manage action reasons:
1.
Select Manage Actions in the implementation project task list:
35
2.
On the Manage Actions page, you can search for existing actions and view associated action
reasons. You can also create new actions and action reasons:
The screen below shows the action reasons for the termination action:
3.
To create a new action reason for an action, click Create in the Actions Reasons section and
complete the required fields:
The new reason code will be available for selection when a user performs the specified action.
36
Managing Workforce Structures

As described in the previous sections, implementers use the setup tasks in FSM to create organization
and workforce structures. Maintenance of such structures can also be done through FSM. For some of
these structures, maintenance tasks are also available in the Workforce Structures work area:
When you select Workforce Structures in the Navigator, the following page is displayed:
Use this work area to manage:
Positions
Jobs
Grades
Departments
Locations
37
For example, to add an entry grade to the position you created earlier, search for the position on the
Manage Position page and then edit the record to add additional information:
38
Personal Data Setup

This section of the document describes the setup and validations that have been predefined for Saudi
for the following person information:
Addresses
Names
Legislative information
National IDs
Addresses
The format in which addresses must be entered for workers located in Saudi is predefined and should
not be modified during implementation. The predefined format enables the following fields
Country (Required)
Address Line 1 (Required either Address Line 1 or PO Box must be entered)
PO Box (Required either Address Line 1 or PO Box must be entered)
Address Line 2
City (Required)
Postal Code
Country
The following figure shows how a Saudi address is captured in the application:
39
Names
The format in which names must be entered for workers located in Saudi is predefined and should not
be modified during implementation.
The Saudi name format follows the standard format used in Oracle Fusion:
Title
First Name (mandatory field)
Fathers Name
Grandfathers Name
Family Name (mandatory field)
The following figure shows how the Saudi name is captured in the application:
Legislative Information
Saudi-specific legislative information can be captured for each person. None of these fields is
mandatory, and it is up to the enterprise to decide which data needs to be entered.
Saudi supports the following legislative information:
Gender : Uses Saudi-specific values in the lookup
Marital Status: Uses Saudi-specific values in the lookup
Religion
Highest Education Level
The following figure shows how Saudi legislative information is captured in the application:
40
The Saudi-specific PER_PERSON_LEGISLATIVE_DATA_LEG_DDF includes the following

flexfields:
Hijrah Date of Birth (PER_INFORMATION2) : Hijrah equivalent date of birth.
This is an optional field and captures the Hijrah equivalent of the Gregorian date of birth.
National Identifiers
In Saudi there are three national identifiers
1.
Civil Identity Number
2.
Hafiza Number replaced by Civil Identity Number, but still used by some organizations.
3.
GOSI Number number issued to an employee by the GOSI Office.
The following validation has been delivered for the Saudi Civil Identity Number:
Civil Identity Number can either be 10 or 11 digits in the following format

o
10 Digit : D-D-DDDD-DDDD
11 Digit : D-D-DDDD-DDDD-D
The following validation has been delivered for the Hafiza Number:
Hafiza Number must be 10 alphanumeric characters.
The following validation has been delivered for the GOSI Number:
GOSI Number must not be more than 9 digits.
The following figure shows how a national identifier is captured in the application:
41
Contacts
The Saudi-specific PER_PERSON_CONTACT_RELATIONSHIP_DDF includes the following
flexfields:
Statutory Dependent (CONT_INFORMATION4)
Visa
The Saudi-specific PER_PERSON_VISA_LEG_DDF includes the following flexfields:
Hijrah Issue Date (VIS_INFORMATION1)
Hijrah Expiration Date (VIS_INFORMATION2)
Disability
The Saudi-specific PER_PERSON_DISABILITY_LEG_DDF includes the following flexfields:
Employment Office (DIS_INFORMATION1)
Note: Refer to the Saudi Employment Office section of this document for details of how to created
Employment Offices
42
Contracts
The Saudi-specific PER_CONTRACT_LEG_DDF includes the following flexfields. The user must
enter contract for employee if gratuity needs to be processed in payroll.
Employment Status (CTR_INFORMATION1)
Presession (CTR_INFORMATION3)
Note: Refer to the Oracle_Fusion_HRMS_Saudi_Payroll_Data.xls document on My Oracle Support

(MOS) for a complete list of predefined lookup and flexfields for Saudi.
43
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 person and
employee management, you would typically sign in to the application using a role connected to a user,
such a Human Resource Specialist, rather than to a member of the implementation team:
The new hire process is the first task in the workforce lifecycle.
To hire an employee:
1.
Select New Person under Workforce Management in the Navigator:
44
2.
In the task list on the left, select Hire an Employee:
Note the other supported person types for Saudi:
3.
Contingent Worker
Non Worker
Pending Worker
On the Identification page, provide the required information:
Note the following:
The Hire Reason field displays a list of valid action reasons defined for the hire action.
The Legal Employer field displays a list of all legal employers for Saudi.
The name format is determined by the predefined name formats for Saudi.
National Identifiers are validated according to the predefined National Identifier SA rules.
45
4.
On the Person Information page, provide the required information:
Note the following:
An address is required and must conform to the predefined Saudi Address format.
The following additional information is optional in Saudi:

o Phone and E-Mail.
46
o Marital Status, Ethnicity, and Highest Education Level fields in Saudi-specific Legislative
Information section
o Citizenship and Visa Information
o Emergency Contacts
5.
On the Employment Information page, provide the required information:
Note the following:
47
Because the employer in this example uses the 3-tier employment model (as selected in legal
employer setup), employment information must be entered at both the terms and assignment
levels. To enter information at the assignment level, click the Assignment 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.
Maintaining Person and Employment Information

Once the new hire process is complete, the person is recorded in the system. Payroll users 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 during maintenance.
Person Management
To maintain person information:

1.
Select Person Management under Workforce Management in the Navigator:
2.
Search for and select the person record:
48
3.
Navigate through the various tabs to view and manage the complete set of person information.
Select either Edit>Correct or Edit>Update to modify the information in any section.
Person Information:
Contacts:
49
Documents:
Disabilities:
Extra Information:
This tab is used to capture country-specific person information. There are no Saudi-specific fields
on the Extra Information tab.
50
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.
51
In the following screen, Reporting Establishment is added to an existing employment instance for the
employee:
Terminating a Worker
When a persons employment period ends, the work relationship must be terminated.
To terminate a work relationship:
1.
Select Manage Work Relationship in the Person Management work area.
52
2.
On the Manage Work Relationship page, select Terminate from the Actions menu:
3.
On the Terminate Work Relationship page, enter the details of the termination, including the
termination reason:
Note: The Termination Reason field displays a list of Action Reasons associated with the
termination action, as described earlier in this guide.
Availability of Functionality Based on Product License
The availability of certain features such as deduction cards and element templates depends on the type
of license you have.
HR-Only: As an HR-only customer, you get access to the basic version of the element templates.
These templates create the element and you need to create the input values, formulas, balances to meet
your business requirements.
Payroll Interface: As a payroll interface customer, you get access to a number of payroll features not
available to an HR-only customer. This includes access to the full earnings element that creates the
element, input values, formulas, balances. These earnings elements can be processed through the
53
calculation to Gross process which is also available to Payroll Interface customers. Any other type of
element, such as deductions, is created using the basic version of the element templates and you need
to create the input values, formulas, balances.
54
Additional Information for Payroll Interface

The setup tasks described up to this point in this document are required to manage the HR processes
for an enterprise. If the enterprise will also be running Oracle Fusion HRMS (Saudi) Payroll, additional
information must be provided to support payroll processes. Setup tasks for Oracle Fusion Payroll are
outside the scope of this guide.
If the enterprise does not implement Oracle Fusion Payroll but extracts data from the Oracle Fusion
application using the Payroll Interface to feed an external payroll system, additional payroll-related data
must be provided to support the Payroll Interface. Detailed documentation for the Payroll Interface
can be found in the Global Payroll Interface Guide (http://www.oracle.com/technetwork/fusionapps/payrollinterfaceguider4-1873384.pdf). The sections that follow describe how to define payrollrelated information to support the Payroll Interface for Saudi implementations:
Deduction Cards
Consolidation Groups
Payroll Definitions
Organizational Payment Methods
Personal Payment Method
Elements and Gross Compensation
55
Deduction Cards
A deduction card captures values required for calculating and processing payroll deductions. To
support the Payroll Interface, you must create a deduction card for each person for whom payroll
deductions will be processed.
For payroll interface user, the deductions cards can be used to capture a set of data that they want to
record in the HR system and then pass over to the third party payroll. Data to be recorded in the
deduction cards is determined in each implementation, depending on customer needs. For payroll
license customers instead, data to be recorded is driven by Fusion Payroll requirements since that data
is the only source for information for payroll calculation.
Employer Deduction Cards

To support the Payroll Interface, you must create a Social Insurance and Gratuity cards for each
PSU.
Creating the Employer Deduction Cards
1.
Sign in using a role that has privileges to manage payroll information:
2.
Select Setup and Maintenance from the Navigator:
56
3.
Select the Manage Implementation Projects task:
4.
Search for and select the Implementation Project name:
57
5.
Expand Define Enterprise Structures for Human Capital management and Manage Legal
Entity Deduction Records, then click on the corresponding Go to Task icon:
6.
Click on Create:
58
Creating the Employer Social Insurance Card
1.
Select Employer Social Insurance Details in the Name field to define data required for Social
Insurance calculation:
59
To add the required information for processing Social Insurance deductions:
Note: Employer GOSI Details calculation component was created automatically. SA GOSI Details
at Payroll Statutory Unit calculation component details record are also created.
2.
Expand the Payroll Statutory Unit Social Insurance Details deduction component details:
60
3.
Select the required Reference Formula field, and click Save:
61
Creating the Employer Gratuity Details Card
1.
Select Employer Gratuity Details in the Name field to define data required for Gratuity calculation:
62
To add the required information for processing gratuity deductions:
Note: Employer Gratuity Details calculation component was created automatically. Saudi Gratuity
Information calculation component details record was also created.
2.
Expand the Saudi Gratuity Information calculation component details:
63
3.
Enter the required information, and click Save.
64
4.
Save the deduction card.
Employee Deduction Cards

Employee GOSI Details Card
The social insurance card is automatically created when the new hire process for an employee is
completed, provided the employee citizenship information is specified. If the citizenship information is
not specified, then the social insurance card must be created manually.
For the automatic card creation to be enabled, your Payroll Product Usage must be set to Oracle
Fusion Payroll or Payroll Interface.
Creating the Employee GOSI Details Card
1.
65
2.
Select Payroll Calculations from the Navigator:
3.
Select the Manage Personal Deductions task:
4.
Search for and select the employee for whom you want to create the card:
66
5.
Search for and select the employee for whom you want to create the card:
6.
Select Employee GOSI Details in the Name field to define data needed for calculating and
reporting social insurance:
Note: This Employee Social Insurance Detail card component creates element entry for the Auto
Indirect element. Hence, you need to create the element eligibility for this element before creating the
card.
67
Adding Deduction Components for Social Insurance
To add the required information for processing Social Insurance deductions:

1.
In the Deduction Overview pane, select Social Insurance:
Note: The Employee GOSI Details calculation components, were created automatically. A Saudi
GOSI Details deduction component details record was also created.
2.
Expand the Social Insurance Details deduction component details:
68
Note: You must enter valid Citizenship, Annuities and Hazards values. All other fields are
optional.
Additional Calculation Component Details for Social Insurance
You can add additional deduction component details for social insurance contributory salary adjust
amount or override amount.
Setup for GOSI Reference Salary:
1.
Click Create on the Component detail:
2.
Select SA Setup GOSI Reference Salary in the Calculation Component Details field:
3.
Enter the GOSI Reference Salary amount:
69
Creating the Adjust GOSI Reference Salary

4.
Click Create on the Component detail:
5.
Select SA Setup GOSI Reference Salary in the Calculation Component Details field
70
4.
Enter the GOSI Reference Salary Adjustment amount:
71
Creating Associations
You must associate the deduction card with a TRU. You must also associate each deduction
component with employments terms (or with an assignment in a three-tier employment model).
To define associations:
1.
In the Deduction Card Overview pane, click Associations.
2.
Click Create in the Associations section:
3.
On the Create Association window, select the TRU responsible for reporting deductions for this
person:
Note: Do not select a deduction component.

4.
Click OK, and then click Save to save the association.
5.
In the Association Details section, click Create.
72
6.
On the Create Association Details window, select the employment terms number and calculation
component, then click OK.
Note: If the employer uses a 3-tier model, you will select an assignment rather than an employer
terms number.
7.
73
Creating the Employee Gratuity Details Card
A Gratuity deduction card captures values required for calculating and processing the Gratuity
payment.
Gratuity card is created automatically upon employee termination, provided the Registered for Social
Insurance checkbox is unselected for the employee. When the gratuity card is created, the gratuity
component, component details, and association are automatically created.
For the automatic card creation to be enabled, your Payroll Product Usage must be set to Oracle
Fusion Payroll or Payroll Interface.
1.
2.
Select Payroll Calculation from the Navigator:
74
3.
Select the Manage Personal Deductions task:
4.
Search for and select the employee for whom you want to create the card.
5.
Click Create:
75
6.
Select Employee Gratuity Details in the Name field to define data required for Gratuity
calculation:
Note: This Employee Gratuity Details card component creates element entry for the Gratuity Auto
Indirect element. Hence, user has to create the element eligibility for this element before create the
card.
76
Adding Deduction Components details for Gratuity
1.
To add the required information for processing Gratuity Calculation:
Note: Gratuity Details, deduction component was created automatically. Gratuity Details deduction
component details record was also created.
2.
Expand the Gratuity Details deduction component details, and provide the Override value, if
required
77
Note: You can enter an override amount to be paid to the employee as gratuity. If override amount is
specified, this amount overrides the reference formula for gratuity calculation defined at the PSU level, and
also the calculation formula defined at legislative level.
Save the deduction card
Creating Associations
You must associate the Gratuity card with a tax reporting unit (TRU). You must also associate each
card component with employments terms (or with an assignment in a three-tier employment model).
To define associations:
1.
In the Card Overview pane, click Associations
2.
Click Create in the Associations section.
3.
On the Create Association window, select the TRU responsible for reporting deductions for this
person:
4.
Click OK, and then click Save to save the association.
78
5.
In the Association Details section, click Create.
4.
On the Create Association Details window, select the employment terms number and deduction
component, then click OK
Note: If the employer uses a 2-tier model, you must select an assignment rather than an
employement terms number.
5.
79
80
Banking Setup
An HR customer may want to add payee banking information even if payroll is not processed by
Oracle Fusion Payroll for Saudi. For example, banking setup may be required for reporting purposes or
because the data may be passed to other products, such as an expenses module.
To accommodate this scenario, the setup of banks and branches must be done before entering bank
accounts and payment methods for the payee. Additionally some payroll setup, described later in this
document, would be needed.
No banks or branches are predefined for Saudi. Banks and branches must be defined during
implementation. This can be done manually, by entering the banks and branches in the application, or
it can be done in a mass upload process.
Banks
To define banks:
1.
Sign in to the application with a role that has implementation privileges, such as
APPL_IMP_CONSULTANT.
2.
Select Manage Banks in the implementation project task list:
3.
Click Create.
4.
On the Create Bank page, provide the required information:
Bank Branches
81
To define branches for the banks you created:

1.
Select Manage Bank Branches in the implementation project task list:
2.
Click Create.
3.
On the Create Bank Branch page, provide the required information:
82
Bank Accounts
Once banks and branches are set up, you can define the bank accounts that are needed for the
organization. Normally, implementation teams set up bank accounts that are used at an organizational
level, such as the source bank accounts for payments, rather than bank accounts at the individual payee
level.
No bank accounts are predefined for Saudi.
To define bank accounts:
1.
Select Manage Bank Accounts in the implementation project task list:
2.
Click Create.
3.
On the Create Bank Branch page, provide the required information:
Note: If you want to use this bank account for processing payments related to payroll, select the
Payroll option in the Account Use field.
Organization Payment Methods

After setting up banks, you can define the payment methods that can be used within the organization
itself.
83
No organization payment methods are predefined for Saudi. Implementation teams will need to create
the ones applicable to the enterprise.
To define organization payment methods:
1.
Select Manage Organization Payment Methods in the implementation project task list:
2.
Click Create.
3.
Select the legislative data group associated with this payment method:
84
4.
On the Create Organization Payment Method page, enter the required information:
Note: Saudi supports the following Payment Types: EFT, Cheque, and Cash Payment.
If you select EFT, the page is refreshed to show fields related to electronic file transfer (EFT):
Net Pay Balance
During the payment process, the net pay balance is used to store the amount to be transferred as
remuneration for the payee. A net pay balance, named Net Pay, is predefined for Saudi, and no
additional setup is required during the implementation phase.
85
To view the Total Pay balance:

1.
Select Manage Balance Definitions in the Payroll Calculations or Setup and Maintenance work
areas:
2.
Enter Total Pay in the Name field and select a Saudi LDG, then click Search:
3.
Click the Net Pay balance in the Search Results to view the balance information:
Note: The Use for Remuneration field is set to Yes.
86
4.
Click Balance Dimensions in the left panel to display the dimensions associated with this
balance:
Note: The Core Relationship Payments has been associated with this balance.
87
Consolidation Groups and Payroll Definitions

Consolidation groups and payroll definitions are normally concepts related to payroll, but if an HRonly customer has the requirement to assign banking details for the employee, then these objects must
be set up first.
Consolidation Groups
Consolidation groups are used within the organization to enable grouping of different payrolls for
reporting purposes. No consolidation groups are predefined for Saudi. If you create payroll definitions
for the implementation, you must define at least one consolidation group first since it is mandatory
information for payroll definitions.
To set up consolidation groups:
1.
Sign in to the application with a role that has implementation privileges, such as
APPL_IMP_CONSULTANT.
2.
Select Manage Consolidation Groups in the implementation project task list:
3.
On the Manage Consolidation Groups page, click Add Row:
4.
Enter a name and select a legislative data group. Description is optional, but useful to provide.
5.
Click Save.
Payroll Definitions
Payroll definitions contain calendar and offset information that determine when payments are
calculated and costed. Using payroll definitions, you can specify payment frequency, processing
schedule, and other parameters for a particular payroll. Payroll period types, such as weekly or monthly,
determine the interval at which you pay employees.
88
Each payroll definition can be associated with only one payroll period type, and you must set up at
least one payroll definition for each payroll period type that you use to pay employees. When you
create a payroll definition, the complete payroll schedule is automatically generated, based on the
selected payroll period type, any offsets or calendar adjustments, and the number of years that you
specify. Once you have saved a payroll definition, you can assign employees to it on the Manage Payroll
Relationships page.
Before you can create a payroll definition, you must have already defined a legislative data group and
consolidation group.
No payroll definitions are predefined for Saudi.
To set up payroll definitions:
1.
Select Manage Payroll Definitions in the implementation project task list:
2.
Click Create.
3.
Select the LDG for this payroll definition, and click Continue:
4.
On the Create Payroll page, enter the required information:
Note the following:
You must select an existing consolidation group.
89
5.
Saudi Arabia only supports Monthly Calendar as period type.
Click Add Row in the Valid Payment Methods section to add an organization payment
method to use as the default, plus any additional payment methods that are valid for this
payroll. You can select any organization payment method defined for the LDG that is linked
to this payroll definition.
Click Next, and provide the required information on the Payroll Offsets page:
In the sample screen above, only the basic information required to create a payroll definition (for
the purpose of assigning a payment method to an employee) is provided.
90
Person Payment Information

To add payment information for an employee, you must assign a payroll definition to the employee
even if you will not be processing payroll for the employee using Oracle Fusion Payroll.
For more information about personal payment methods, refer to the Oracle Fusion Global Payroll
User Guide (http://www.oracle.com/technetwork/fusion-apps/payrolluserguider4-1873385.pdf).
Assigning a Payroll to the Employee

If a payroll definition was not assigned to the employee during the hire process, follow these steps to
do so:
1.
Sign in to the application with a role that has payroll privileges, such as PAY_MGR_ALL.
2.
Select the Manage Payroll Relationships task in the Payroll Calculations or Payment
Distribution work area:
91
3.
Search for and select the employee.
4.
On the Manage Person Details page, add the payroll in the Payroll Details section:
Assigning Payment Methods to the Employee

Once banks and branches have been loaded in the system and a payroll definition has been assigned to
the employee, you can add payment methods to the employee record.
To assign personal payment methods:
1.
Select the Manage Personal Payment Methods task in the Payroll Distribution work area:
2.
Search for and select the employee.
3.
On the Manage Person Details page, click Create:
92
4.
On the Personal Payment Method page, select the Organization Payment Method for this
employee:
Note: If the payment type is EFT, you must add a bank account and provide banking details:
An employee can have multiple payment methods.
Use the Payment Amount Type and Percentage fields to manage distribution across
different payment methods.
93
Elements and Compensation

Even if elements are normally used in a payroll project only, the implementation team of an HR project
may need to create a regular earnings element and connect it to compensation information, such as
basic salary or other gross compensation elements.
Elements may also be used in the process of calculating gross compensation for the Payroll Interface.
Elements and Element Templates

Elements are created through predefined element templates, which provide the user with an intuitive
user interface and manage the creation of different types of elements and their associated objects. The
template engine gets a set of rules from the template and processes the predefined template structure
to create appropriate data.
A set of element templates is predefined for Saudi allowances e.g. Housing Allowance. The following
global template is used to create base pay:
Standard Earnings
The following secondary classifications are available under this classification:
Supplemental Earnings
The following secondary classifications are available under this classification:
94
The following steps show how to create a standard earnings element for basic salary:
1.
Select Manage Elements in the Setup and Maintenance or Payroll Calculations work area:
2.
On the Manage Elements page, click Create.
3.
On the Create Element window, select a legislative data group and a primary classification, then
click Continue:
4.
Complete the fields at the top of the Create Element page, and then answer the questions:
95
Note: The questions and default answers shown here are based on the standard global element
template for standard earnings. Your answers drive the definition of the earnings element to be
created.
5.
Click Next, and complete the rest of the questionnaire:
6.
Verify the information and click Submit to create the new element:
96
7.
On the Element Summary page, provide additional information as needed, such as input values,
processing rules, and eligibility:
Use the Element Overview panel to navigate through the setup pages.
Note: Element eligibility must be defined so the element can be linked to an element entry (and
hence to gross compensation).
8.
In the Element Overview panel, select Actions>Create Element Eligibility.
9.
On the Element Eligibility page, enter a name in the Element Eligibility Name field and click
Submit.
97
Note: By entering only a name and no eligibility criteria, the element is eligible for all employees.
10. Click an Input Value in the left panel to provide additional information as needed:
11. Repeat this entire process to create a set of elements to support your business needs. For example,
you might create another element for a housing allowance.
Element Entries
For earnings to be associated with a person, you must create an element entry for that person and that
element. In the sections that follow, you will see how an element entry is automatically generated by
creating a Salary Basis or a Compensation entry for the payee. Other processes (described in detail in
the Oracle Fusion Global Payroll Guide) can also be used to create element entries for a person.
98
Salary Basis and Compensation

Once you have created the elements that are meant to hold the payee basic salary and compensation
information, you can perform the setup required to attribute the gross compensation to the payee.
Salary Basis
To set up the salary basis:

1.
Sign in to the application with a role that has compensation administrator privileges, such as
CMP_ADMIN_ALL.
2.
Navigate to Compensation work area:
3.
Select Manage Salary Basis, and then click Create:
99
4.
On the Create Salary Basis page, select the payment element to use for the salary basis and provide
the required information:
Individual Compensation
To create a compensation plan, such as for a car allowance:

1.
In the Compensation work area, select Manage Plans and click Create:
2.
Select the payroll element for the compensation plan, such as a car allowance:
3.
Select the Dates tab and set the payment start and end dates:
100
4.
Select the Eligibility tab to define eligibility for the plan:
5.
Select the Plan Access tab and indicate whether to restrict access to this plan:
6.
Select the Instruction Text tab and add any user instructions you want to associate with the plan.
Assigning Salary Basis and Compensation to a Payee
Once you have completed setup for Salary Basis and Compensation, you can assign them to the payee.
101
Adding a Salary
1.
Select Manage Salary in the Person Management work area:
2.
Click Create, then complete the fields on the Add Salary window:
3.
On the Manage Salary page, select the previously created Salary Basis and enter a Salary
Amount, such as 2000 SAR per month:
102
When you save this record, an element entry with the specified start and end dates is automatically
generated. You can view the entry on the Manage Elements page:
Note that an annualized value of the compensation is given to the Salary Basis. The salary element
entry is passed to the Gross Compensation calculation process, which prepares compensation data for
the Payroll Interface.
103
Adding Compensation
1.
Select Manage Compensation in the Person Management work area:
2.
On the Manage Compensation page, click Award Compensation:
3.
On the Award Compensation window, select the previously created compensation plan and enter
the compensation amount, such as 500 SAR for housing allowance:
104
When you save this record, an element entry with the specified start and end dates is automatically
generated. You can view the entry on the Manage Elements page:
The compensation element entry is passed to the Gross Compensation calculation process, which
prepares compensation data for the Payroll Interface.
105
Conclusion
This document has provided a set of information useful for anyone implementing or using Oracle
Fusion HRMS (Saudi) HR.
In order to verify that all the tasks needed in an implementation have been performed, we recommend
referring to the documents mentioned in the Other Information Sources section.
Glossary
business unit
A unit of an enterprise that performs one or many business functions that can be rolled up in a
management hierarchy. A business unit can process transactions on behalf of many legal entities.
consolidation group
A grouping of payroll runs within the same time period for which you can schedule reporting, costing,
and post-run processing.
deduction card
A mechanism for capturing values required for calculating payroll deductions at the level of a payroll
statutory unit, tax reporting unit, or payroll relationship. At the payroll relationship level, this is called a
personal deduction card.
deduction component
An individual deduction captured on a deduction card. Typically relates to a deduction element for
which the deduction component creates an entry.
department
A division of a business enterprise dealing with a particular area of activity.

division
A business-oriented subdivision within an enterprise. Each division is organized to deliver products

and services or address different markets.
enterprise
An organization with one or more legal entities under common control.

flexfield
Grouping of extensible data fields called segments, where each segment is an attribute added to an
entity for capturing additional information.
106
geography structure
A hierarchical grouping of geography types for a country. For example, the geography structure for
United States is: State, County, City, and then Postal Code.
GOSI
The General Office for Social Insurance (GOSI) is the agency concerend with social insurance.
LDG
Abbreviation for legislative data group.

legal authority
A government or legal body that is charged with powers such as make laws, levy and collect fees and
taxes, and remit financial appropriations for a given jurisdiction.
legal employer
A legal entity that employs people.

legal entity
An entity is identified and given rights and responsibilities under commercial law, through the
registration with the country's appropriate authority.
legal jurisdiction
A physical territory, such as a group of countries, single country, state, county, parish, or city, which
comes under the purview of a legal authority.
legal reporting unit
The lowest level component of a legal structure that requires registrations. Used to group workers for
the purpose of tax and social insurance reporting or represent a part of your enterprise with a specific
statutory or tax reporting obligation.
legislative data group
A means of partitioning payroll and related data. At least one legislative data group is required for each
country where an enterprise operates. Each legislative data group is associated with one or more payroll
statutory units.
location
The physical address of a workforce structure, such as a department or a job.

LDG
Abbreviation for legislative data group.
107
payroll statutory unit
A legal entity registered to report payroll tax and social insurance. A legal employer can also be a
payroll statutory unit, but a payroll statutory unit can represent multiple legal employers.
Process configuration group
A group of action parameters that set options, mainly related to performance and logging, for payroll
processes. A few parameters control other features, such as element templates, dates, and report output
location.
registration
The record of a party's identity related details with the appropriate government or legal authorities for
the purpose of claiming and ensuring legal and or commercial rights and responsibilities.
reporting establishment
An organization used in the production of human resources (HR) reports that are required by
government agencies.
tax reporting unit
A legal entity that groups workers for the purpose of tax and social insurance reporting.
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Oracle Fusion HRMS (Saudi):
Copyright 2013, Oracle and/or its affiliates. All rights reserved.
HR Implementation and Functional

Considerations
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Oracle Fusion HRMS For SA HR Setup White Paper

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An Oracle White Paper

Oracle Fusion HRMS (Saudi Arabia):

Oracle Fusion HRMS (Saudi Arabia): HR Implementation and Functional Considerations

Oracle Fusion HRMS (Saudi Arabia): HR Implementation and Functional Considerations

Oracle Fusion HRMS (Saudi Arabia): HR Implementation and Functional Considerations

Hiring a Worker ...........................................................................................................44

Oracle Fusion HRMS (Saudi Arabia): HR Implementation and Functional Considerations

Whats in this Document

The Saudi-specific data that needs to be provided.

Where predefined Saudi-specific data can be integrated with customer-specific data.

The Saudi -specific business rules that have been implemented.

The HR processes that can be executed for Saudi.

Information required to support interfacing or transferring data to a third-party payroll system.

Other Information Sources

Oracle Fusion HRMS (Saudi Arabia): HR Implementation and Functional Considerations

Comments and Suggestions

Oracle Fusion HRMS (Saudi Arabia): HR Implementation and Functional Considerations

Creating an Implementation Project

Oracle Fusion HRMS (Saudi Arabia): HR Implementation and Functional Considerations

Select Setup and Maintenance from the Navigator:

On the Implementation Projects tab, click Create:

Oracle Fusion HRMS (Saudi Arabia): HR Implementation and Functional Considerations

Click Save and Open Project.

Select Manage Geographies in the implementation project checklist:

Oracle Fusion HRMS (Saudi Arabia): HR Implementation and Functional Considerations

Address Cleansing Defined:

Oracle Fusion HRMS (Saudi Arabia): HR Implementation and Functional Considerations

Oracle Fusion HRMS (Saudi Arabia): HR Implementation and Functional Considerations

Defining Enterprise Structures

Select Manage Legal Jurisdictions in the implementation project task list:

Oracle Fusion HRMS (Saudi Arabia): HR Implementation and Functional Considerations

Ensure that the Identifying field has the value Yes:

Oracle Fusion HRMS (Saudi Arabia): HR Implementation and Functional Considerations

Select Manage Legal Addresses in the implementation project task list:

On the Manage Legal Addresses page, click Create.

Oracle Fusion HRMS (Saudi Arabia): HR Implementation and Functional Considerations

To define legal authorities:

Select Manage Legal Authorities in the implementation project task list:

On the Manage Legal Authorities page, click Create.

On the Create Legal Authority page:

Add one or more addresses.

Click Save and Close.

Legislative Data Groups

Oracle Fusion HRMS (Saudi Arabia): HR Implementation and Functional Considerations

On the Manage Legislative Data Groups page, click Create.

Oracle Fusion HRMS (Saudi Arabia): HR Implementation and Functional Considerations

Oracle Fusion HRMS recognizes different types of legal entities:

A legal employer is a legal entity that employs workers.

If it is to be used in an HCM context, designate it as a legal employer. In an HCM implementation, it

If it is to be used in a Payroll context, designate it as a PSU.

Oracle Fusion HRMS (Saudi Arabia): HR Implementation and Functional Considerations

To define legal entities:

Select Manage Legal Entities in the implementation project task list:

Click Create to display the Create Legal Entity page:

Oracle Fusion HRMS (Saudi Arabia): HR Implementation and Functional Considerations

Provide the required information, noting the following:

The Legal Entity Identifier is an internal code.

An identifying jurisdiction must have been previously defined.

Click Save and Close.

Legal Entity Registrations

On the Scope Selection window, select Select and Add:

Oracle Fusion HRMS (Saudi Arabia): HR Implementation and Functional Considerations

Select Manage Legal Entity Registrations in the task list.