05 define enterprise structures

Partner Boot Camp - Fusion HCM Global HR

Define Enterprise Structures Instructor Guide

August 8, 2013

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CONTENTS

Lesson 1: Define Enterprise Structures .......................................1 Objectives.............................................................................................. 1 The Enterprise Structure Configurator (ESC) ................................................ 2 ESC Overview ......................................................................................... 3 ESC Benefits .......................................................................................... 4 Instructor Note: Using the ESC .................................................................. 5 Establishing Enterprise Structures Using the ESC .......................................... 6

Overview ............................................................................................. 6 Enterprise Configuration Using ESC .......................................................... 7 Manage Enterprise ................................................................................ 8 Enterprise Structure Components ............................................................ 9 Enterprise and Divisions ....................................................................... 10 Creating Legal Entities Using the ESC ..................................................... 12 Instructor Note: Creating Legal Entities Using the ESC .............................. 13 Instructor Note: Enterprise Configuration Using the ESC ............................ 14 Creating Business Units Using the ESC: Key Concepts ............................... 15 Instructor Note: Creating Business Units Using the ESC ............................. 17 Creating Reference Data Sets Using the ESC ............................................ 18 Common Set ...................................................................................... 19 Reviewing the Configuration ................................................................. 20 Viewing the Technical Summary Report .................................................. 21 Loading the Configuration and Rolling Back ............................................. 22 Instructor Note: Activity Timing ............................................................. 23 Activity Introduction: Establishing Enterprise Structures ............................ 24

Activity Solution: Establishing Enterprise Structures................................ 26 Establish Enterprise Structures using the ESC Review Questions ................. 33

Review Question 1 ............................................................................ 34 Review Question 2 ............................................................................ 35 Review Question 3 ............................................................................ 36 Questions and Answers ...................................................................... 37

Lesson Highlights .................................................................................. 38 Lesson Highlight Details ....................................................................... 39

Lesson 1: Define Enterprise Structures

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. 1


Objectives

After completing this lesson, you should be able to:

Establish the enterprise structure using the ESC


2 Copyright © 2013, Oracle and/or its affiliates. All rights reserved.

The Enterprise Structure Configurator (ESC)

This graphic illustrates the process to configure your enterprise using the Enterprise Structures Configurator (ESC) . After you define your enterprise, job and position structures, you can review them, make any necessary changes, and then load the final configuration.



ESC Overview

The ESC is an interview-based tool that guides you through the configuration of your enterprise structures. Use the ESC as part of your set up to define the organization structures and job and position structures of the enterprise. How do I access the ESC? In the Setup and Maintenance work area, select the Establish Enterprise Structures task under the Define Initial Configuration task list:



ESC Benefits

Using the ESC, you can:

Create all the organizational structures at one time.

Create multiple configurations to test multiple scenarios.

Review the enterprise configuration prior to loading it.

Rollback an enterprise configuration after loading it.



Instructor Note: Using the ESC

The students may want to know what happens if they do not use the ESC to configure their enterprise structures. If you do not use the ESC, then you must set up your enterprise structures using the individual tasks that correspond to each enterprise component. This also means that you cannot set up multiple configurations and compare different scenarios. Students may want to know if they have locations already set up, can they see them in the ESC. The answer to this question is No.



Establishing Enterprise Structures Using the ESC

Overview

In this section, you will learn how to:

Describe the organization components within an enterprise Set up multiple enterprise configurations Review the enterprise configuration Load the enterprise configuration



Enterprise Configuration Using ESC

This graphic displays all the components you set up in ESC and the order in which you perform the tasks.



Manage Enterprise

The following screenshot is the Manage Enterprise page within the Establish Enterprise Structures task in the Enterprise Structures Guided Flow. You can see the 7 train stops that guide you through the high-level organizational setup:



Enterprise Structure Components

This graphic is an example of an enterprise structure with two divisions operating in four countries with a combination of sales and marketing departments.

Enterprise: For each configuration in ESC, you define the high-level structures

within the scope of an enterprise. It consists of legal entities under common control and management.

Division: A division refers to a business or product oriented subdivision.

Divisions are used in HCM to define the management organization hierarchy, using the generic organization hierarchy. This hierarchy can be used to create organization based security profiles.

Legal Entity: Represents the legal employer and/or payroll statutory unit (PSU).

A legal employer is a legal entity that employs people. A PSU is a legal entity responsible for the payment of its workers and can be used to report tax and social insurance.

Legislative Data Group (LDG): (not shown in the graphic) LDGs are created automatically in ESC, with one LDG created for each location country identified in the interview. You can see them in the technical summary report. Use LDGs to partition payroll data in large organizations with multiple legal entities.

Departments: A department is an organization to which you assign workers.

Note: The ESC does not create departments, you create departments using the Manage Departments task.



Enterprise and Divisions

You use the guided flow within the Establish Enterprise Structures task to enter basic information about your enterprise, such as the primary industry and the location of your headquarters. You then create divisions, legal entities, business units, and reference data sets. When implementing Oracle Fusion Applications you operate within the context of an enterprise that has already been created in the application for you. This is either a predefined enterprise or an enterprise that has been created in the application by a system administrator. A division refers to a business oriented subdivision within an enterprise, in which each division organizes itself differently to deliver products and services or address different markets. A division can operate in one or more countries, and can be comprised of many companies or parts of different companies that are represented by business units. The following figure illustrates the structure of InFusion Corporation after adding a new division and other relevant organizations. The new division exists within the current enterprise structure, but you can manage the costs and reporting separately from the InFusion Corporation.



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Creating Legal Entities Using the ESC

In ESC you have three options to create your legal entities:

Create legal entities automatically: based on the countries in which divisions of

your business operate. Upload legal entities from a spreadsheet: if you have a list of legal entities

already defined for your enterprise. Create legal entities manually: add individual legal entities in the interview.

This graphic illustrates the InFusion Corporation with two divisions. The InFusion Lighting division operates in the US and Japan, and the InFusion Security division operates in the UK and India. Using the Map Divisions by Country page in the ESC, you can create a legal entity for each country. Therefore the ESC creates four legal entities for the InFusion Corporation:

InFusion Lighting Japan LE InFusion Lighting US LE InFusion Security UK LE InFusion Security India LE



Instructor Note: Creating Legal Entities Using the ESC

Note: The list of countries available (in the new window after you select to generate the legal entities automatically) is based on the location information already entered in the interview. You can also add additional countries.



Instructor Note: Enterprise Configuration Using the ESC

Use the graphic to explain how the ESC guides you through each page to set up the enterprise structures. The ESC is different from the individual tasks as it includes all the relevant tasks together. As the ESC is based on best practices it enables you to complete your configuration by thinking about how you run your business, where your company operates and employs people, and how you manage your employees. You can configure the enterprise to reflect your organization structure.



Creating Business Units Using the ESC: Key Concepts

Used throughout Fusion Applications for management reporting, processing of transactions, and security of transactional data.

Can create business units manually or automatically. Can automatically create business units at many different levels

Considerations for selecting how to create your business units and which level to select:

Do you use or ever plan to use Oracle Fusion Financials? If yes, then select the legal entity level to ensure financial transactions are processed correctly.

Do you need business units at the functional level to represent, for example, Sales, Consulting, or Product Development?

Do you need business units at the country level to represent the countries in which you operate?

In the following diagram, InFusion decides to create business units using the country and business function level. Therefore, they created the following business units:

Sales_Japan Marketing_Japan Sales_US Sales_UK Marketing_India Sales_India



Instructor Note: Creating Business Units Using the ESC

Include reference to curriculum on business units. Considerations for business units:

Do you need business units at the functional level to represent sales, consulting, or product development? Select the Business Function level.

Do you need business units at the country level to represent the countries in which you operate? Select the Country level.

Note: Inform the students that if they choose to create their business units manually, then the ESC does not automatically create the corresponding reference data sets. They must also create the reference data sets manually.



Creating Reference Data Sets Using the ESC

The ESC uses the business unit information to create the required reference data sets. For example, if you create the business units at the division level, then the ESC creates one reference data set for each division. If you create business units automatically, then the ESC automatically creates reference data sets as well. The reference data set provides the business unit with information, which is used at the transaction level. The application uses the business unit you associate to the person to determine certain set-enabled information, such as grades, departments, jobs, and locations that are available for the person.

Managing Business Unit Set Assignment You can change the default reference data set, which is assigned to a business unit for all reference data groups, such as grades, locations, departments, and jobs. You can override the default reference data set for any reference data group. For example, in the below screenshot, Fusion Security SET is the default reference data set for the India Fusion Security business unit. You can override the set assignment so that grades are assigned to the default Fusion Security SET, departments are assigned to another set, and jobs are assigned to yet another set.



Common Set

The Common Set is a predefined set that enables you to share reference data across business units.



Reviewing the Configuration

The last step in establishing the enterprise structures using the ESC, is reviewing the resulting configuration. In the review results, you can view all the enterprise structures that will be created, and the management reporting structure that will be created upon loading the configuration.



Viewing the Technical Summary Report

In the Manage Enterprise Configuration page, click Review Results for your enterprise configuration, to view and download the technical summary report:

The technical summary report lists the enterprise and job structures, displays the management reporting structure, and in addition displays the following:

Legislative data groups (LDGs) - the application defines one legislative data group for each country identified in the configuration.

Name of the legislative data group that will be assigned to the payroll statutory unit generated for each legal entity.



Loading the Configuration and Rolling Back

You can load only one enterprise configuration. When you load a configuration, the application creates the divisions, legal entities, business units, and so on. After you load the configuration, you then use individual tasks to edit, add, and delete enterprise structures.

Rolling Back a Configuration The ESC provides the ability to roll back an enterprise configuration in the following circumstances:

You can roll back an enterprise configuration manually after loading it, for example, because you decide you do not want to use it. Clicking the Roll Back Configuration button on the Manage Enterprise Configuration page rolls back any enterprise structures that were created as a part of loading the configuration.

If an error occurs during the process of loading the configuration, then the application automatically rolls back any enterprise structures that were created before the error was encountered.



Instructor Note: Activity Timing

The activities in this section provide the students with information on how to define an enterprise configuration. However, only one configuration can be loaded in the environment. Each student can perform the tasks within the Define Initial Configuration task list, except the Load Enterprise Configuration task. Approximate Activity Timing: 30 minutes

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Activity Introduction: Establishing Enterprise Structures

Background Use this activity to define the enterprise structures and their associated locations using the Establishing Enterprise Structures task in the Enterprise Structures guided flow. The InFusion Corporation is based in the United States and has two divisions: InFusion Lighting and InFusion Security. It is an international company with business operations in United States and United Kingdom. Requirements

Use the bold text for the object names, replacing the XX with your initials, as indicated by your instructor

You must have access to Oracle Fusion Application InFusion database or comparable training or test instance at your site, on which to complete this practice.

Scope

1. Define the enterprise and divisions using the following information:



2. Define the legal entities and business units using the following information:

3. Review and assign the reference data sets. 4. Save the enterprise configuration. 5. Review the enterprise configuration.



Activity Solution: Establishing Enterprise Structures

Sign in as hcm_impl or hcm_impl1.

Start Here Setup and Maintenance work area, Implementation Project: XX Workforce Deployment page

These task lists are expanded: Workforce Deployment - Define Common Applications Configuration for Human Capital Management - Define Enterprise Structures for Human Capital Management - Define Initial Configuration.

1. In the Establish Enterprise Structures row, click Go to Task.

2. On the Manage Enterprise Configuration page, click Create. Location: Create Enterprise Configuration dialox box

3. In the Name field, enter xx Enterprise Configuration.

4. Click OK.

Location: Establish Enterprise Structures: Manage Enterprise page

Information Use the Establish Enterprise Structures: Manage Enterprise page to enter

basic information such as the primary industry and the location of your headquarters.

5. Retain the value InFusion Corporation in the Enterprise Name field.

6. In the Short Name field, enter XX Corp.

7. In the Primary Industry field, select Finance and Insurance.

8. In the Headquarters Country field, select United States.

9. In the Legal Information section, in the Legal Name field, enter xx InFusion

Corporation LE.

10. In the Legal Entity Identifier field, enter US0001.

11. In the Legal Entity Registration Number field, enter US0002.



12. In the Legal Reporting Unit Registration Number field, enter US0003.

13. In the Legal Address field, select Create. Location: Create Location dialog box

14. In the Name field, enter xx Location US HQ.

15. In the Address Line 1 field, enter Redwood Shores.

16. Click OK.

Location: Establish Enterprise Structures: Manage Enterprise page

17. In the Enterprise Configuration Requirements section, select Yes. I have other legal entities to set up. Information

InFusion Corporation is an international company with business operations in United States and United Kingdom. You must define legal entities for the countries in which InFusion Corporation operates.

18. Click Next. Location: Establish Enterprise Structures: Manage Divisions page

Information Create the two divisions in InFusion Corporation: InFusion Lighting and InFusion Security. Each division operates in more than one country and delivers different products and services.

19. Click the Add Row icon.

20. In the Name field, enter xx InFusion Lighting.

21. In the Country field, select United States.

22. In the Location field, select xx Location US HQ.


24. In the Name field, enter xx InFusion Security.

25. In the Country field, select United Kingdom.



26. In the Location field, select Create to define the UK location for the xx InFusion Security division. Location: Create Location dialog box

27. In the Name field, enter xx Location UK HQ.

28. In the Address Line 1 field, enter Oracle Parkway.

29. In the City or Town field, enter Reading.

30. Click OK.

Location: Establish Enterprise Structures: Manage Divisions page

31. In the Location field, select xx Location UK HQ.

32. Click Save.

33. On the Confirmation dialog box, click OK.

34. Click Next.

Location: Establish Enterprise Structures: Manage Legal Entities page

Information

Create legal entities for the InFusion Lighting and InFusion Security divisions.


36. In the Country field, select United States.

37. In the Name field, enter xx InFusion Lighting US LE.

38. In the Division field, select xx InFusion Lighting.

39. In the Legal Entity Identifier field, enter US0004.

40. In the Legal Entity Registration Number field, enter US0005.

41. In the Legal Reporting Unit Registration Number field, enter US0006.

42. In the Legal Address field, select xx Location US HQ.




44. Follow steps 1 to 10 using the following data, to create the legal entity for InFusion Security, UK:

Country: United Kingdom

Name: xx InFusion Security UK LE

Division: xx InFusion Security

Legal Entity Identifier: UK0001

Legal Entity Registration Number: UK0002

Legal Reporting Unit Registration Number: UK0003

Legal Address: xx Location UK HQ

45. Click Save.


47. Click Next.

Location: Establish Enterprise Structures: Create Business Units page

48. Click Select All.

Information

You select to automatically generate business units at the legal entity level because InFusion Corporation requires business units at the country level to represent the countries in which they operate.

49. Click Next. Location: Establish Enterprise Structures: Manage Business Units page

Information

The ESC has created a business unit for each legal entity in xx InFusion Corporation. You can use the Manage Business Units page to review the business units, and define a location for each business unit.

50. Click Next.

Location: Establish Enterprise Structures: Reference Data Sets page

Information The ESC has automatically created a reference data set for each business unit.

51. Click Next.



Location: Manage Business Unit Set Assignment page Information

Use the page to define the default reference data set for each business unit. Note: The reference data set provides the business unit with information, which

is used at the transaction level.

52. For the xx InFusion Security UK LE BU, in the Default Reference Data Set field, select xx InFusion Security UK LE SET.

53. For the xx InFusion Lighting US LE BU, in the Default Reference Data Set field, select xx InFusion Lighting US LE SET.

54. For the xx InFusion Corporation LE BU, in the Default Reference Data Set field, select Common Set.

55. Click Next.

Location: Manage Location Reference Set page

Information

Use the page to assign reference data sets to your locations.

56. For xx Location UK HQ, in the Reference Data Set field, select xx InFusion Security UK LE SET.

57. For xx Location US HQ, in the Reference Data Set field, select xx InFusion

Lighting US LE SET.

58. Click Save.


60. Click Next. Location: Establish Enterprise Structures: Review Results page

Information

Use the page to review the enterprise structures created. Note: The Management Reporting Structure tab enables you to view the

organization structures in a hierarchy.

61. Click the Management Reporting Structure tab.



62. Review the organization structures that you have created.

63. Click Submit. Location: Manage Enterprise Configuration page

64. In the XX Enterprise Configuration row, click Review Results to download a

technical summary of the enterprise configuration. Location: Review Enterprise Configuration page

65. Click Download Technical Summary Report to view and download the PDF

report.

66. Click Done. Location: Manage Enterprise Configuration page Information

After you complete the task, navigate back to the task list within your implementation project to mark the task as complete.

67. Click Save and Close. Location: Implementation Project: XX Workforce Deployment page

68. Click Done.

Location: Setup and Maintenance work area, Overview page

69. Click the Implementation Projects tab.

70. Click XX Workforce Deployment.

71. Select Workforce Deployment - Define Common Applications Configuration

for Human Capital Management - Define Enterprise Structures for Human Capital Management - Define Initial Configuration.

72. In the Establish Enterprise Structures row, click the Status icon. Location: Edit Status dialog box

73. In the Status field, select Completed.

74. Click Save and Close.



Location: Implementation Project: XX Workforce Deployment page

75. Click Done.

At this point you should have defined and reviewed the high-level organization structures.



Establish Enterprise Structures using the ESC Review Questions



Review Question 1

You can create multiple configurations to compare different scenarios. 1. True 2. False



Review Question 2

Name three organization components that you can create using the ESC.



Review Question 3

You can roll back an enterprise configuration once you load the configuration. 1. True 2. False



Questions and Answers

1. You can create multiple configurations to compare different scenarios. True 2. Name three organization components that you can create using the ESC. Enterprise, division, legal entity, business unit, reference data set. 3. You can roll back an enterprise configuration once you load the configuration. True



Lesson Highlights

In this lesson, you should have learned to:

Describe what ESC is and how to use it to configure your enterprise



Lesson Highlight Details

Enterprise Structures Configurator The Enterprise Structures Configurator (ESC), also known as the HCM Configuration Workbench, is an interview-based tool that guides you through the configuration of your enterprise structures. Use the ESC as part of your set up to define the organization structures and job and position structures of the enterprise. Establishing Enterprise Structures Using ESC You use the guided flow within the Establish Enterprise Structures task to enter basic

information about your enterprise, such as the primary industry and the location of your headquarters. You then create divisions, legal entities, business units, and reference data sets. Establishing Job and Position Structures Using ESC You use a guided process to determine if you need positions as well as jobs in your enterprise, s et up additional attributes and contextual attributes for jobs and positions. The ESC uses the primary industry you selected in the Establish Enterprise Structures task to suggest a recommended approach for using jobs or jobs and positions. You can use the recommendation or answer a series of questions about how you manage people. Defining Legal Jurisdictions, Legal Authorities, Legal Entities and Legal Reporting Units for HCM

You are required to register your legal entities with legal authorities in the jurisdictions where you conduct business, as required by local business requirements or other relevant laws.

Define jurisdictions and related legal authorities to support multiple legal entity registrations, which are used by Oracle Fusion Tax and Oracle Fusion Payroll.

Define a legal entity for each registered company or other entity recognized in law for which you want to record assets, liabilities, expenses and income, pay transaction taxes, or perform intercompany trading.

Create and register legal reporting units to support local reporting requirements. When you first create a legal entity, the Oracle Fusion Legal Entity Configurator automatically creates one legal reporting unit for that legal entity with a registration.

05 define enterprise structures

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