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07 define legal jurisdictions and legal authorities for hcm
1.
Partner Boot Camp
- Fusion HCM Global HR Define Legal Jurisdictions and Legal Authorities for HCM Instructor Guide August 8, 2013
2.
Copyright © 2013,
Oracle and/or its affiliates. All rights reserved. Disclaimer This document contains proprietary information and is protected by copyright and other intellectual property laws. You may copy and print this document solely for your own use in an Oracle training course. The document may not be modified or altered in any way. Except where your use constitutes "fair use" under copyright law, you may not use, share, download, upload, copy, print, display, perform, reproduce, publish, license, post, transmit, or distribute this document in whole or in part without the express authorization of Oracle. The information contained in this document is subject to change without notice. If you find any problems in the document, please report them in writing to: Oracle University, 500 Oracle Parkway, Redwood Shores, California 94065 USA. This document is not warranted to be error-free. Restricted Rights Notice If this documentation is delivered to the United States Government or anyone using the documentation on behalf of the United States Government, the following notice is applicable: U.S. GOVERNMENT RIGHTS The U.S. Government’s rights to use, modify, reproduce, release, perform, display, or disclose these training materials are restricted by the terms of the applicable Oracle license agreement and/or the applicable U.S. Government contract. Trademark Notice Oracle and Java are registered trademarks of Oracle and/or its affiliates. Other names may be trademarks of their respective owners.
3.
i CONTENTS Lesson 1: Define
Legal Jurisdictions and Legal Authorities for HCM 1 Lesson Objectives ................................................................................... 1 Legal Jurisdictions Overview...................................................................... 2 Legal Authorities Overview........................................................................ 3 Legislative Data Groups Overview .............................................................. 4 Legislative Data Groups............................................................................ 5 Instructor Note: Legislative Data Groups..................................................... 7 Lesson Highlights .................................................................................... 8 Lesson Highlight Details ......................................................................... 9
4.
5.
Lesson 1: Define
Legal Jurisdictions and Legal Authorities for HCM Copyright © 2013, Oracle and/or its affiliates. All rights reserved. 1 Lesson 1: Define Legal Jurisdictions and Legal Authorities for HCM Lesson Objectives After completing this lesson, you should be able to: Define legal jurisdictions and legal authorities for HCM
6.
Lesson 1: Define
Legal Jurisdictions and Legal Authorities for HCM 2 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Legal Jurisdictions Overview Jurisdiction is where a particular piece of legislation applies, perhaps group of countries, country, state, county, or parish. French Labor Law, Singapore Transactions Tax Law, and US Income Tax Laws are examples of particular legislation that apply to legal entities operating in different countries' jurisdictions. You can create legal jurisdictions in addition to the predefined ones. Types of jurisdictions are: Identifying Jurisdiction Income Tax Jurisdiction Transaction Tax Jurisdiction Identifying Jurisdiction An identifying jurisdiction is the first jurisdiction you must register with to be allowed to do business in a country. For each legal entity, select an identifying jurisdiction. If there is more than one jurisdiction that a legal entity needs to register with to commence business, select one as the identifying jurisdiction. Typically the identifying jurisdiction is the one you use to uniquely identify your legal entity. Income tax jurisdictions and transaction tax jurisdictions do not represent the same jurisdiction. Although in some countries, the two jurisdictions are defined at the same geopolitical level, such as a country, and share the same legal authority, they are two distinct jurisdictions. Income Tax Jurisdiction Income tax jurisdictions impose taxes on your financial income generated by all your entities within their jurisdiction. Create income tax jurisdictions to properly report and remit income taxes to the legal authority. Transaction Tax Jurisdiction Tax jurisdictions and their respective rates are provided with transactions from the suppliers, and require periodic maintenance. Create transaction tax jurisdictions through Oracle Fusion Tax in a separate business flow, because of the specific needs and complexities of various taxes. Use transaction tax jurisdiction for legal reporting of sales tax and value added tax.
7.
Lesson 1: Define
Legal Jurisdictions and Legal Authorities for HCM Copyright © 2013, Oracle and/or its affiliates. All rights reserved. 3 Legal Authorities Overview A legal authority is a government or legal body that is charged with powers to make laws, levy and collect fees and taxes, and remit financial appropriations for a given jurisdiction. There are predefined legal authorities in the application, you can create your own in addition. The Internal Revenue Service is responsible for collecting taxes and the interpretation and enforcement of the Internal Revenue Code of the United States. Legal authority information is printed on your tax reports to meet some countries’ requirements, such as India and Brazil. Legal authorities are defined in the Oracle Fusion Legal Entity Configurator. Tax authorities are a subset of legal authorities and are defined using the same setup flow. Legal authorities are not mandatory in Oracle Fusion Human Capital Management (HCM), but are recommended and are generally referenced on statutory reports.
8.
Lesson 1: Define
Legal Jurisdictions and Legal Authorities for HCM 4 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Legislative Data Groups Overview Legislative data group: Is a country specific data partition within an enterprise. Supports the configuration of objects with a strong legislative context, such as payroll, absence types, elements, rates of pay. Does not span enterprises
9.
Lesson 1: Define
Legal Jurisdictions and Legal Authorities for HCM Copyright © 2013, Oracle and/or its affiliates. All rights reserved. 5 Legislative Data Groups Legislative data groups are a means of partitioning payroll and related data. At least one legislative data group is required for each country where the enterprise operates. Each legislative data group is associated with one or more payroll statutory units. Note: For payroll purposes, it is recommended to have one legislative data group for each country, since you define elements, formulas, and payroll definitions for a legislative data group. If you have multiple legislative data groups for a country, you will need to define the information again for each legislative data group. Oracle Fusion Payroll is organized by legislative data groups.
10.
Lesson 1: Define
Legal Jurisdictions and Legal Authorities for HCM 6 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Each legislative data group marks a legislation in which payroll is processed, and is associated with a legislative code, currency and its own costing allocation key flexfield structure. Note: You assign the costing allocation key flexfield when you create a legislative data group, though you can use the same costing key flexfield across different legislative data groups. It is recommended that you assign a costing key flexfield when you create a legislative data group, even if you are not using Financials, since you cannot edit the flexfield value once the legislative data group is created. A legislative data group is a boundary that can share the same setup and still comply with the local laws. A legislative data group can span many jurisdictions as long as they are within one country, and contain many legal entities that act as payroll statutory units. Each payroll statutory unit can belong to only one legislative data group.
11.
Lesson 1: Define
Legal Jurisdictions and Legal Authorities for HCM Copyright © 2013, Oracle and/or its affiliates. All rights reserved. 7 Instructor Note: Legislative Data Groups Students may question this statement “At least one legislative data group is required for each country where the enterprise operates“ This statement can be interpreted in multiple ways: A legislative data group is typically required only if you are implementing Payroll and a separate LDG is required for each localization that Oracle provides. If you are not implementing Payroll, you may choose to limit the number of legislative data groups. For example, If you are implementing Talent and Compensation only, you need not create a legislative data group for each country. Some example scenarios: Company A, an EBS company that implemented Compensation only: Since EBS model has hard partitions they created 32 legislative data groups to match their partitions. This resulted in high maintenance for them; for example, they had to reenter their jobs information 32 times, which could have been avoided. Company B, a Peoplesoft company that implemented Compensation and Talent: They decided to implement legislative data group by regions to suit their requirements. Company C, a Peoplesoft company that implemented Compensation only: They just created one legislative data group. All the above scenarios are correct. The difference is the amount of work required to maintain the created legislative data groups. You can add a legislative data group at any point in time. So, if in the future you decide to implement Payroll, you can still add the required legislative data groups.
12.
Lesson 1: Define
Legal Jurisdictions and Legal Authorities for HCM 8 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Lesson Highlights You should have learned how to: Define legal jurisdictions, legal authorities, and legislative data groups for HCM
13.
Lesson 1: Define
Legal Jurisdictions and Legal Authorities for HCM Copyright © 2013, Oracle and/or its affiliates. All rights reserved. 9 Lesson Highlight Details Legal Jurisdictions and Legal Authorities Jurisdiction is where a particular piece of legislation applies, perhaps group of countries, country, state, county, or parish. French Labor Law, Singapore Transactions Tax Law, and US Income Tax Laws are examples of particular legislation that apply to legal entities operating in different countries' jurisdictions. You can create legal jurisdictions in addition to the predefined ones. A legal authority is a government or legal body that is charged with powers to make laws, levy and collect fees and taxes, and remit financial appropriations for a given jurisdiction. There are predefined legal authorities in the application, you can create your own in addition. Legislative Data Groups Legislative data group: Is a country specific data partition within an enterprise. Supports the configuration of objects with a strong legislative context, such as payroll, absence types, elements, rates of pay. Does not span enterprises.
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