HCM Foundation

Purpose

This document is an overview of Human Capital Management Fundamentals/Foundations within Oracle JD Edwards EnterpriseOne Human Capital Management system.

The JD Edwards EnterpriseOne Human Capital Management (HCM) system from Oracle provides a versatile, cost-effective, and timesaving solution for managing your employee information and accounting for employee time worked. You use this system to track information that human capital management users typically share. If you are not using the JD Edwards EnterpriseOne Payroll system, you can use the JD Edwards EnterpriseOne HCM system as a stand-alone time and labor tracking system.

You can use this system to:

• Track employees and employee job information.
• Enter time for employees.
• Manage your worldwide labor expenses and billings.
• Track job costs by creating journal entries for the general ledger.
• Streamline your hiring processes.
• Set up the deductions, benefits, and accruals (DBAs) that you use during payroll processing and benefits administration.

Scope

This document is intended for EnterpriseOne users who are setting up the Human Capital Management module for use within their organization.

Details

Human Capital Management Overview

The JD Edwards EnterpriseOne Human Capital Management (HCM) system from Oracle provides a versatile, cost-effective, and timesaving solution for managing your employee information and accounting for employee time worked. You use this system to track information that human capital management users typically share. If you are not using the JD Edwards EnterpriseOne Payroll system, you can use the JD Edwards EnterpriseOne HCM system as a stand-alone time and labor tracking system.

You can use this system to:

• Track employees and employee job information.
• Enter time for employees.
• Manage your worldwide labor expenses and billings.
• Track job costs by creating journal entries for the general ledger.
• Streamline your hiring processes.
• Set up the deductions, benefits, and accruals (DBAs) that you use during payroll processing and benefits administration.

Human Capital Management Fundamentals Integrations

The JD Edwards EnterpriseOne Human Capital Management system includes the following modules:

• JD Edwards EnterpriseOne Human Resources
• JD Edwards EnterpriseOne Benefits
• JD Edwards EnterpriseOne Payroll
• JD Edwards EnterpriseOne Time and Labor
• JD Edwards EnterpriseOne Self-Service

The JD Edwards EnterpriseOne HCM Foundation system contains the central databases for all information that human resources and payroll users typically share. For example, you use the foundation system to track:

• Complete employee information.
• Job information.
• Pay type, deduction, benefit, and accrual (PDBA) information.
• Time and labor information.

An integrated, central database means that, when the human resources clerk updates an employee's information, the employee's payroll information is also updated. A central database:

• Eliminates redundant data entry.
• Maintains current and accurate information across all your business operations.
• Improves communication among departments.

Both human resources and payroll users can enter information into the JD Edwards EnterpriseOne HCM Fundamentals system. However, to prevent unauthorized access to confidential information, you can set up system security that allows users to access only the information that they need for their jobs. Typically, your system administrator sets up system security during system implementation. The system administrator can set up security for an entire form or for individual fields on a form.

This table shows how the JD Edwards EnterpriseOne HCM Fundamentals system supports JD Edwards EnterpriseOne Human Resources, JD Edwards EnterpriseOne Benefits Administration, and JD Edwards EnterpriseOne Payroll:

The JD Edwards EnterpriseOne Benefits system also provides:

• Benefits Administration
• Benefits Setup
• Employee Self-Service

The JD Edwards EnterpriseOne Human Resources system also provides:

• Application Information
• Position Control

To simplify your processes and facilitate communication within your organization, the JD Edwards EnterpriseOne HCM Fundamentals system also integrates with these JD Edwards EnterpriseOne systems:

Human Capital Management Fundamentals Implementations

In the planning phase of your implementation, take advantage of all JD Edwards EnterpriseOne sources of information, including the installation guides and troubleshooting information. When determining which electronic software updates (ESUs) to install for JD Edwards EnterpriseOne HCM Fundamentals, use the EnterpriseOne and World Change Assistant. EnterpriseOne and World Change Assistant, a Java-based tool, reduces the time required to search and download ESUs by 75 percent or more and enables you to install multiple ESUs at one time.

Global Implementation Steps

Implementation Steps for HCM Fundamentals

This table lists the implementation steps for the JD Edwards EnterpriseOne HCM Fundamentals system. Also included in the table are reference documents that provide details on each of the steps.

System Setup

Before using any features in your JD Edwards EnterpriseOne Human Capital Management Foundation system, you need to define critical information that the system uses for processing. You also need to define information that you will use to enter data throughout the system. This information consists of:

System Controls for Human Capital Management (P99410)

Define the System Controls within the System Control Application P99410.

This table lists and describes the data items that you can activate for specific processes in the Human Capital Management (HCM) and Payroll applications:

System Options Setup (P05001S)

To define default information that applies to the entire system, you set up system options. Define the System Options within the System Options applications P05001S. These options control the types of information that you track and the rules that the system uses to perform specific calculations. For example, you use system options to specify the date that the system will use for tracking changes.

This table describes the types of information that you control with system options:

Company Options (P05001C)

Prerequisite: Verify that the companies within your organization are set up in the JD Edwards EnterpriseOne General Accounting system. Typically, the Accounting Department is responsible for setting up companies.

You set up company options to define default information that applies to all of the companies within your organization, and to define additional information that is specific to individual companies within your organization. Typically, you first set up options for the default company, company zero. Defint the Company options within the Company Options application P05001C. You can also set up company options for each company within your organization. If you do not set up company options for a company within your organization, the system uses the default company options when processing information for that company.

If you set up company options for each company within your organization, you can override some of the default company options. For example, you can enter standard hours per year for a particular company that vary from the standard hours per year that you entered for the default company.

Some of the default company options apply to all of the companies within your organization, and cannot be overridden at the individual company level. For example, if you signify that you are not using accounts payable integration or step progression processing at the default company level, none of the companies within your organization can use these options. However, if the default company options are set to activate these options, it is not necessary for all companies in your organization to use them. For example, if you have only one company within your organization that processes step progression information, you must set the default company options to allow step progression processing and then override that setting for all companies except the one company that processes step progression information.

You also set up company options to control payroll processing for the employees of each company. For example, you define this information at the default company level:

• How the system retrieves the payroll deduction, benefit, and accrual (PDBA) history.
• Whether the system overrides home company information on timecards.
• Whether each company and business unit use the same debit account for automatic deposit processing.
• How the system determines payment dates during payroll processing.

You must set up company options for the default company before you can process payroll or account for labor.

For more detailed information on setting company options, refer to E1: 05: Company Options Setup (P05001C) Company Options)

Human Resources Management Common Settings (P05004)

HRM Common Settings effect many different modules within the Human Capital Management application, For information on this topic, refer to E1: 05: Human Resources Management (HRM) Common Setting (P05004)

User-Defined Codes for Human Capital Management Foundations

The user-defined codes for the JD Edwards EnterpriseOne Human Capital Management Foundation system are included in the software and are an integral part of the JD Edwards EnterpriseOne Human Capital Management features. While some of the codes cannot be changed, others are provided with lists of values that you can customize to suit the needs of your organization.

Accomplishment Type (05/AT)

You use accomplishment type codes to specify a type of accomplishment. Examples include:

• Industry certification
• Degree completed
• Training completed

Arrearage Method (05A/AR)

You use arrearage method codes to specify how the system collects payroll amounts that cannot be deducted from an employee's pay due to insufficient earnings.

Bank Transit (06/BC)

You use bank transit codes to identify an employee's financial institution. Banks might refer to this code as the ABA or payment routing number. For Canadian banks, this number contains eight digits. Therefore, Canadian clients must enter the bank transit number with a leading zero. If you change this number for an employee, the system creates a prenote for the employee's next auto deposit.

Based On Date (08/BO)

You use based on date codes to define the date that you want to use to calculate the completion date of employee setup tasks.

Benefit Enrollment Events (08/BE)

You use benefit enrollment event codes to denote a benefits enrollment event such as:

• Marriage
• Divorce
• Birth of a child

Change Reason (06/T)

You use termination/change reason codes to indicate the reason that an employee's record changed. For example, you can enter the reason that you are recommending a salary or rate change.

Check Route (06/CR)

You use check route codes to specify the check routing or mail-stop code. Use this code to sequence the printing of payroll checks to facilitate their handling and delivery.

Competency Change Reason (05/CH)

You use change reason codes to indicate the reason an employee competency goal was changed. For example, you might enter a new goal for an employee after he or she has reached the current goal. Therefore, you would enter a competency change reason of Achievement of Goal.

Competency Type (05/CY)

You use competency type codes to represent a competency table, or category, for which you can track employee competencies. Values for competency type codes are:

• 001: Training
• 002: Skill
• 003: Accomplishment
• 004: Certification
• 005: Degree
• 006: Language

The values in this user-defined code table are hard coded and cannot be changed. Therefore, each of the competencies that you track must pertain to one of these competency types. Adding additional values to this list requires system customization.

Default Autopay Type (06/20)

You use employee autopay type codes to designate the default pay type that the system uses to generate automatic payments in those instances in which the system does not use the employee labor distribution instructions. If you leave this field blank, the system uses pay type 001.

Delegate Authorization Type (08/AY)

You use delegate authorization type codes to specify the type of authorization given to a delegate. Values for delegate authorization type codes are:

• 1: Approving
• 2: Reporting
• 3: Status Change
• 4: Appraisal
• 5: Managers Workbench

The values in this user-defined code table are hard coded and cannot be changed.

Employee Benefit Status (06/EA)

You use employee benefit status codes to specify employee actions, such as new hire or rehire, for which the system searches as it tests for benefits eligibility. An asterisk indicates that the guidelines refer to all employee actions not otherwise specified. Do not change the codes that are hard coded, such as A (Active) and X (Terminated). These are required codes in the system.

Employee Setup Action (08/S3)

You use employee setup action codes to define the event that should occur during the new-employee setup workflow process. Hire, Rehire, and Transfer are hard coded. Rehire, Transfer, and Relocation codes cannot be used until a future release.

Employee Setup Status (08/S1)

You use employee setup status codes to indicate the status of the entire employee-setup workflow process. Changing the setup status triggers the specific event associated with the status. For example, the system can display a W status if Workflow is waiting for a manager's approval. The system displays the status for the employee setup process on the Work With Employee Setup form (W08710C) and in the Employee tab area of the Employee Setup Entry form (W08710G). These codes are hard coded in the system and should not be changed. These status codes are listed in the sequence that the system might use to change them depending on how the processing options are set up:

• P: Pending - An assigned setup process begins with this status. You can make changes or delete the process if needed.
• W: Waiting for Approval - The system sets the process to this status when the process is initiated and if the processing options for Employee Setup Workbench are set to require a process approval.
• V: Approved - The system sets the process to this status when it obtains a process approval.
• 2: Rejected - The system sets the process to this status when the process is rejected.
• A: Active - The system sets the process to this status when the process is initiated and no approval is required. You cannot cancel the process when it is changed to an Active status.

Employment Status (06/ES)

You use employment status codes to specify an employee's status within the company. You can change the default codes or set up new codes to meet the needs of your company. Sample values include:
Blank: Full-time Regular

• 1: Full-time Temporary
• 2: Part-time Temporary
• 3: Part-time Regular
• 4: Seasonal
• 5: Summer Intern

French Language PDBA (06/LF)

You use French language PDBA codes to specify the French equivalent of the English text that prints on an employee's pay stub as the PDBA description. If the employee is set up as a French language employee, the system uses the PDBA description from this table on the pay stub.

Gap Reason (08/GN)

You use gap reason codes to indicate the reason that a gap snapshot was taken. For example, for a gap snapshot taken at the end of each fiscal year, you could use a reason code of Fiscal Year. You might also take a gap snapshot if major organizational changes occur, in which case you could use a reason code of Organizational Changes.

Setup Human Resources Automatic Accounting Instructions

The JD Edwards EnterpriseOne Payroll system automatically creates vouchers for payroll taxes, insurance premiums, and other payroll liability amounts that must be paid to third parties. Accounts Payable integration automates the tasks of calculating the payments due to each third-party and of generating the associated accounts payable vouchers. For a general understand of Automatic Accounting Instructions (AAIs) refer to E1: 09: Overview of Automatic Accounting Instructions (AAI) in General Accounting (P0012) ).

JD Edwards EnterpriseOne Payroll integrates with JD Edwards EnterpriseOne General Accounting to automatically update general ledger transactions and account balances. JD Edwards EnterpriseOne Payroll can create and post transactions to the general ledger using the automatic accounting instructions (AAIs) that you define. You can use full detail on the labor accounts and run a summary of liabilities and cash accounts. The required setup for Human Resources is detailed in E1: 07: Automatic Accounting Instruction (AAI) Journal and Document Types ). Some frequently asked questions regarding AAIs are discussed in E1: 07/77/75A/75Z: Payroll Journal AAIs (Automatic Accounting Instruction) FAQ (Doc ID).

History Tracking and Turnover

To help you manage employee information, you can set up the system to store historical records of employee information via the Select Data Items for History Tracking (P08041). If you do this, the system creates a historical record of the old information when you enter or update employee information. For example, when an employee receives a promotion or changes marital status, you can update the employee's current information to reflect the change and store the previous information in historical records.

You can also set up the system to store turnover records. Turnover records show employee movement within your organization, such as when an employee changes jobs, as well as movement resulting from new hires and terminations.

You can use history and turnover information to:

• Review the employee's job progression since you began tracking history.
• Review salary increases given at the same time that a job change was made.
• Analyze historical changes to employee information.
• Monitor employee movement within your company.

When you initialize history and turnover tracking, the system creates initial history records for all employee records in the Employee Master Information table (F060116). Furthermore, the system tracks history only for specific fields that you choose to track before you initialize. The history records are dated so that you can determine when you began tracking history and turnover.

Adding Employee Information

When you hire an employee, you must add an employee record that contains personal, company, job, and pay information for the employee. The information in the employee record can be used to analyze and report on your employees and to meet government reporting requirements. You can add employee records to the database using either of two methods.

For detailed information related to adding employee records one at a time, refer to E1: 08: Overview of US Employee Entry (P0801) Adding US Employees) and E1: 08 Overview of Adding Payroll Related Employee Information ).

For detailed information related to adding multiple employee records, refer to E1: 08: Adding Employee Records Using Employee Quick Hire (P060116Q) ).

EDI Capabilities

JD Edwards EnterpriseOne Human Capital Management does not currently provide EDI functionality. There are no future plans to provide this functionality.