Tuesday, 17 October 2017

FUSION HCM : ABSENCE MANAGEMENT

Absence Management:


You implement Absence Management using the Absence Management functional area in the Workforce Deployment offering.
Before you begin, use the Workforce Deployment section of the Setup and Maintenance work area to access reports for this offering. These reports include:
• Lists of setup tasks
• Descriptions of the functional areas and features you can select when you configure the offering
• Lists of business objects and enterprise applications associated with the offering
Major Task list in Absence management:
Define General Absence :
Use the tasks in this task list to review predefined lookups, value sets, and flexfields. You might
want to extend or update those values before you set up the main absence components, such as absence types. The tasks in this task list are independent of specific absence components, and are not required to set up absences.
Define Absence Structures :
Use the tasks in this task list to create these absence components:
• Absence Certifications
• Absence Reasons
• Absence Plans
• Absence Types
Define Absence Formulas and Rates :
 The tasks in the Define Absence Structures task list already contain predefined rules that you can use to define your absence policies. However, to set up additional rules, use the Manage Fast Formulas task to write your own formulas and associate them with the absence components.
Use the Manage Rate Definitions task if you want to define the rate of payment during absence periods that pertain to specific absence plans.
Define Absence Time Periods :
Use the Manage Repeating Time Periods task if you want to create repeating periods to determine how often a worker accrues leave in an accrual term.
Define Eligibility :
 Use the Manage Eligibility Profiles task in this task list to determine the set of eligible workers who can use specific absence plans and absence types.

Setup Sequence:
1.a)Lookups
   b) Valuesets
   c)Flexfields
   d)fast Formulas
   e)Eligibility profiles
  f)Rate definitions
2.a) absence plans
   b) absence certifications
   c) Absence Reasons
3.Absence Types
4.Absence categories
Use the following steps to set up absence management:
1. Extend lookups, value sets, and flexfields based on your requirement. Write fast formulas to include rules in the
absence objects in addition to the predefined ones. Create rate definitions to define payment rates for absence
plans.
2. Create absence plans to define rules for time accruals and entitlements. Create certification requests that you want
workers to complete to continue receiving entitlements during absence periods. Create absence reasons that you
want workers to select while recording absences.
3. Create absence types, such as sickness leave or vacation, and associate each type with the relevant plans, reasons,
and certifications.
4. Create absence categories, such as personal leave or medical leave, and associate them with the relevant absence
types for reporting purposes.
Components:
Absence types :Use the Manage Absence Types task to create absence types.
Absence categories :Use the Manage Absence Categories task to create absence categories and associate them with
absence types.
Absence patterns Review: these settings on the Display Features tab when you create an absence type.
Absence plans :Use the Manage Absence Plans task to create absence plans.
Absence reasons :Use the Manage Absence Reasons task to create absence reasons.
Action items : Use the Manage Certifications task to set up a requirement. Then associate the requirement as an
action item with an absence type so that every absence associated with the absence type is subject
to that requirement.
Major Tasks in Absence management:
1)Define General Absence Use the tasks in this task list to review predefined lookups, value sets, and flexfields. You might want to extend or update those values before you set up the main absence components, such as absence types. The tasks in this task list are independent of specific absence components, and are not required to set up absences.
2)Define Absence Structures Use the tasks in this task list to create these absence components:
Absence Certifications
Absence Reasons
Absence Plans
Absence Types
Absence Categories
3)Define Absence Formulas and Rates The tasks in the Define Absence Structures task list already contain predefined rules that you can use to define your absence policies. However, to set up additional rules, use the Manage Fast Formulas task to write your own formulas and associate them with the absence components.
Use the Manage Rate Definitions task if you want to define the rate of payment during absence periods that pertain to specific absence plans.
4)Define Absence Time Periods Use the Manage Repeating Time Periods task if you want to create repeating periods to determine how often a worker accrues leave in an accrual term.
5)Define Eligibility Use the Manage Eligibility Profiles task in this task list to determine the set of eligible workers who can use specific absence plans and absence types.
Worker Availability: How It Is Determined
The availability of a worker during a selected time period is automatically determined using:
• Absence entries during that period
• The work schedule that the worker presently follows
• Calendar events
How Worker Availability Is Determined:

Availability forSelected TimeFrame
           |
    Search for work schedule
           |
             yes
 Work Schedule Found? --->Availability based on work patterns,calendar events,and absences
                      | No yes
Calendar events defined for location or department? --->Availability based on calendar events,standard working hours,and absences    
           | No
  
Availability based on standard working hours and absences.


The application searches for primary work schedules that were assigned to these workforce structure levels in the following order:
1. Primary assignment of the worker
2. Position
3. Job
4. Department
5. Location
6. Legal Employer
7. Enterprise
If there is no primary schedule assigned to any of the workforce structures, then the worker availability is determined by:
• Absences
• Calendar events, if created for the worker's location or department
• Standard working hours defined for the worker's primary assignment
If there are no calendar events created, then the application determines availability based on standard working hours and
absences.
To determine availability, work schedules assigned to lower workforce structure levels take precedence over those defined at
higher levels.


Eligibility Profiles for Absence Plans: 

Use an eligibility profile to determine whether a person qualifies for enrollment in an absence plan. Eligibility profiles that you
associate with absence plans determine:
• Who can enroll in absence plans
• Who can schedule absences
Using Eligibility Profiles with Absence Plans
To associate an eligibility profile with an absence plan:
1. Create the eligibility profile using the Manage Eligibility Profiles task in the Absence Administration work area.
2. Associate the eligibility profile with the absence plan using the Manage Absence Plans task.
Example: To enable only female employees to record maternity leave, create an eligibility profile using the Manage Eligibility Profiles task. Then, when you create a maternity qualification absence plan, select the eligibility profile you created from the Eligibility section on the Participation tab.


Derived Factors:

Derived factors define how to calculate certain eligibility criteria that change over time, such as a person's age or length of service. You add derived factors to eligibility profiles and then associate the profiles with objects that restrict eligibility.
Derived Factor Types
Using the Manage Derived Factors task, you can create six different types of derived factors:
• Age
• Length of service
• A combination of age and length of service
• Compensation
• Hours worked
• Full-time equivalent


Rate Definitions for Absence Payments :

Use a rate definition to determine the rate of a single unit of absence for payment during an absence period. However, you calculate and resolve the rates only in Oracle Fusion Global Payroll or a third-party payroll application.
This topic as following aspects:
• Using rate definitions with absence plans
• Types of absence payments that support rate definitions
Using Rate Definitions with Absence Plans
To associate a rate definition with an absence plan:
1. Create the rate definition using the Manage Rate Definitions task in the Absence Administration work area.
2. Associate the rate definition with the absence plan on the Entries and Balances tab of the Manage Absence Plans
task.
Example: If you want to calculate payments of each time unit when you disburse an accrual balance, you create a rate
definition using the Manage Rate Definitions task. Then, when you create an absence plan, you select the rate definition that you created from the Disbursement Rate Rule list on the Entries and Balances tab.

Types of Absence Payments that Support Rate Definitions

The following list describes the types of absence payments for which you can associate a rate definition
Absence Payment Rate Rule :
Calculates payment during an accrual and qualification absence period.
For a qualification absence plan, you can select this rate definition to calculate payment for a qualification absence period. When you create a qualification plan, remember that you define qualification bands to specify the percentage of payment during an absence period.
Example: You want to award the worker 75% pay up to the first 90 days of the absence. You use a
rate definition to define the calculation method to translate that percentage into an actual payment
value.
Final Balance Payment Rate Rule :
 Calculates payment of accruals when plan participation ends.
Example: If the worker is terminated or loses eligibility for the absence plan, you might want to use a rate definition to calculate the final accrual balance. Create a rate definition that considers the worker's salary details and calculates the payment value for each unit of accrued time.
Partial Disbursement Rate Rule :
Calculates payment when paying out part of an accrual balance.
Example: If the worker is terminated or loses eligibility for the absence plan, you might want to
disburse the remainder of the accrual balance as cash. Create a rate definition that considers the
worker's salary details and calculates the payment value for each unit of accrued time.
Liability Booking Rate Rule :
 Calculates the cost of a worker's accrual balance to determine employer liability.
Example: If the is terminated or loses eligibility for the absence plan, you might want to determine
employer liability for worker time accruals for the rest of the accrual term.


Effective Dates in Absence Management :

Date Effectivity: 
Date effectivity preserves a history of changes made to the attributes of some objects. Professional users can retrieve and edit past and future versions of an object.
Many Human Capital Management (HCM) objects, including person names, assignments, benefits plans, grades, jobs,
locations, payrolls, and positions are date-effective.
Logical and Physical Records
Date-effective objects include one or more physical records. Each record has effective start and end dates. One record is
current and available to transactions. Others are past or take effect in the future. Together, these records constitute the
logical record or object instance.
The following changes to the department manager attribute in a department business object. Each row represents a single physical record.


Absence Plan Types: 

Create accrual plans, qualification plans, and no entitlement plans using the Manage Absence Plans task in the Absence
Administration work area.
Accrual
Use this type to create absence plans that enable workers to accrue time for taking paid leave, such as a vacation plan.
Configure rules that determine various aspects of leave time, such as:
• Length and type of the accrual term in which workers accrue time
• Maximum time that workers can accrue in a term
• Maximum time that workers can carry forward to the next term
Qualification
Use this type to create an absence plan where workers qualify for the plan and receive payments during the absence period.
For example, use qualification plans for defining absence rules related to events, such as long term illness or maternity.
Configure rules to determine the payment percentages that apply for specific periods during the absence, for specific
workers.
No Entitlement
Create absence plans of this type to track paid or unpaid absences without maintaining an accrual balance or providing leave entitlements, such as periodic accruals. Similar to an accrual plan, you can define the length and type of the plan term and determine when eligible workers can enroll in the plan. You can also use plans of this type in combination with a qualification plan. 
For example, use a no-entitlement plan to pay workers if they are not eligible for a standard maternity
absence qualification plan.


Accrual Plan Rules: 

Configure the following rules when you create an absence accrual plan in accordance with the leave policy of your enterprise:
• Accrual term and frequency
• Plan eligibility
• Enrollment and termination
• Waiting period and vesting period
• Plan limits
• Payments
• Adjustments
Accrual Term and Frequency :
An accrual term is a period of time during which workers accrue time. You must specify the type of accrual term to use for the plan. 
For example, you can define one of these term types:
• An accrual term of one calendar year that restarts on January 1
• An accrual term that starts on the worker's annual hire date and restarts on every anniversary
Plan Eligibility :
Associate an eligibility profile with the accrual plan to determine the set of workers who can enroll in that plan.
Enrollment and Termination :
Decide when to enroll workers in the accrual plan and choose when to disenroll a terminated worker from the plan.
Waiting Period and Vesting Period :
Waiting period Define if you want newly enrolled workers to accrue time only after a specific amount of time elapses
after the enrollment date.
Vesting period Define if you want newly enrolled workers to accrue time, but not use it until after a specific amount of time.
Plan Limits
Configure the following plan limits:
• Carryover
• Ceiling
For accrual plans, define rules for the maximum leave time that workers can accrue and the maximum leave time that workers
can carry over to the next term.
Payments
Decide how you want to calculate payment of accrual balances for the following scenarios:
• When workers must be paid a different rate during the absence period
• When a part of the accrual balance must be disbursed to workers as cash
• When the cost of accrual balance must be calculated to determine employer liability
• When the accrual balance must be paid to workers when their plan participation ends
Adjustments
You can enable the following types of adjustments that HR specialists can make during maintenance of absence records and entitlements:
• Discretionary disbursements of accrual balance
• Accrual balance transfers across plans
• Other adjustments


Accrual Plan Term Types: 

When you create an accrual plan, you must select one of the following term types to define an accrual term during which
workers accrue leave:
• Calendar year
• Anniversary year
Calendar Year
The accrual term starts on the month, day, and year that you select. The term restarts next year on the same day. For
example, if you select January 1, 2015, the accrual term starts on that day and restarts on January 1, 2016.
Anniversary Year
The accrual term starts on the hire date and restarts on each anniversary. For example, if the enrolled worker's hire date is
May 1, 2015, the accrual term starts on this date and restarts on May 1, 2016.
Entering a continuous service date when enrolling in the accrual plan doesn't affect the start date. The continuous service date affects the length-of-service calculations while processing a waiting period, vesting period, or plan limits defined in an accrual band matrix. However, it doesn't affect the accrual term.
Accrual Plan Enrollment and Termination: 
Workers are enrolled into accrual plans as a result of employment and eligibility and disenrolled from accrual plans when
they are terminated or plan eligibility ends. Define when you want to enroll or disenroll a worker in the Participation tab of the
Create Absence Plan page.
Configure the plan to:
• Automatically enroll workers when they are hired or when a transfer event occurs.
• Use a formula if you want to consider other aspects or rules to determine when to enroll workers.
Define a waiting period if you want newly enrolled workers to start accruing time under that plan only after a specific amount of time elapses after the date of enrollment.
Configure the plan to automatically disenroll workers as a result of employment termination or loss of eligibility to a plan. On plan termination, define how to:
• Disburse the amount for payment if the worker has a positive absence balance.
• Recover the amount from the last pay if the worker has a negative absence balance.
Absence Plan Eligibility: 
An eligibility profile in Absence Management defines criteria used to determine whether a person qualifies for an accrual or
qualification absence plan. Define eligibility profiles and then associate it with a plan to determine the set of workers who can
enroll in that plan. To associate an eligibility profile with an absence plan:
1. Create the eligibility profile using the Manage Eligibility Profiles task in the Absence Administration work area.
2. Associate the eligibility profile with the absence plan using the Manage Absence Plans task.
If you want all workers to be eligible for the absence plan, then do not add an eligibility profile. If a plan does not have an eligibility profile associated with it, then it does not mean that workers are enrolled automatically into the plan. New hires may be enrolled automatically, if that is the option set in the plan definition. Existing workers have to be enrolled manually.
Accrual Frequency Definition: 
Award leave time to workers throughout an accrual term in equal installments known as accrual periods. Determine the
frequency of accrual periods by selecting one of the following Accrual Frequency Source values on the Accrual tab in the
Create Absence Plan page:
• Person primary frequency
• Repeating time period
Person Primary Frequency :
Select Person Primary Frequency to award time at the start of each payroll period. For example, if the worker enrolled in
the plan receives weekly payroll, the leave time accrues once a week.
Repeating Time Periods :
The worker accrues time at the start of each instance in a repeating time period. For example, you created a biweekly
repeating period for an annual accrual term. The worker accrues time every two weeks during the term.
You create the repeating time period using the Manage Repeating Time Periods task in the Absence Administration work area. Then, associate the repeating time period with the accrual absence plan on the Create Absence Plan page.
Accrual Plan Limits: 
For accrual plans, you can configure the following plan limits:
Carryover Rule Determines the maximum time that workers can carry over to the next term.
Ceiling Rule Determines the maximum leave time that workers can accrue
Use an accrual band matrix to build criteria using various factors, such as length of service, to determine workers who qualify
for specific plan limits. Alternatively, you can use a formula to determine each plan limit.
Accrual Bands: 
Use accrual bands to vary accrual benefits to workers depending on employment criteria, such as length of service, grade, or
other factors. This topic shows various types of accrual bands that you can define in the Accrual Matrix section on the Create
Absence Plan page.
The examples show accrual bands based on the following factors:
• Length of service
• Location and length of service
• Grade


Accrual Balance Adjustments: 
Depending on your access, you can select the following accrual plan balance adjustment options:

• Adjust balance
• Transfer balance
• Disburse balance
• Update balance details
You can select these balance adjustment options on the Enrollment and Adjustments menu of the Plan Participation section
on the Manage Absence Records and Entitlements page.
Adjust Balance
Use this option to make special adjustments to plan balances, such as award leave time to a worker for exemplary
performance at work.
Transfer Balance
Use this option to select a source plan and specify an amount of time to transfer to a target plan balance. Before you make
this adjustment, review the plan balances of the source and target plans on the Manage Absence Records and Entitlements
page. This helps determine if the worker has enough time in the source plan balance that you can transfer to the new plan
balance.
Disburse Balance
Use this option to pay out a part of the plan accrual balance to the worker.
Update Balance Details
Use this option to update the adjustment value and reason, such as removing an incorrect adjustment value or updating the adjustment reason as clerical error.


Enabling Accrual Balance Adjustment Options: 

Use the Entries and Balances tab on the Manage Absence Plans page to enable the following types of accrual plan
adjustments:
• Accrual balance transfers across plans
• Discretionary disbursements of accrual balance
• Other adjustments
When you enable these adjustments, it then allows HR specialists to make adjustments to plan balances on the Manage Absence Records and Entitlements page. To make adjustments, HR specialists can select an option on the Enrollments and Adjustments menu of the Plan Participation section.
Accrual Balance Transfers Across Plans:
This adjustment option enables HR specialists to select a source plan and specify an amount of time to transfer to a target plan balance.
Discretionary Disbursements of Accrual Balance:
This adjustment option enables HR specialists to pay out a part of the plan's accrual balance to the worker. If you select this option, you must also select a disbursement rate rule in the Rates section to determine how to calculate the payment.
Other Adjustments:
This adjustment option enables HR specialists to make special adjustments to plan balances, such as award leave time to a worker for exemplary performance at work. When HR specialists make adjustments on the Manage Absence Records and Entitlements page, they can select Clerical or Compensatory as the adjustment reason.


Qualification Plan Rules:

Configure the following rules when you create an absence qualification plan in accordance with the leave policy of your
enterprise:
• Plan term
• Plan eligibility
• Enrollment and termination
• Payments
Plan Term
A qualification plan term is an assessment period for which the Evaluate Absence process calculates entitlements for the total absent time recorded in that period. When you create an absence qualification plan, you must select the type of plan term.
For example, you can limit the duration of the plan term to the duration of the absence.
Plan Eligibility
Associate an eligibility profile with the qualification plan to determine the set of workers who are eligible to record an absence that belongs to that plan.
Enrollment and Termination
Decide when to enroll workers in the qualification plan. Also, decide whether ongoing payments under this plan must continue if a worker is terminated or loses eligibility for the plan.
Payments
Use an entitlement band matrix to determine the payment percentages that apply for specific time periods during an absence.
Decide how you want to calculate the payment rate of a single unit of absence. You can use a rate definition to include the calculation rules, or use a formula. For example, you want workers who have completed a particular tenure to receive specific percentage of pay for a specific absence period.


Qualification Plan Term Types: 

A qualification plan term is an assessment period during which absence entitlement for the total absent time recorded in that period is considered. When you create a qualification absence plan using the Manage Absences Plans task, you must select one of the following plan term types:
• Calendar year
• Rolling backward
• Rolling forward
• Absence duration
Calendar Year
The qualification plan term starts on the month, day, and year that you select. The duration of the term is one year. For
example, if you select January 1, 2015, the qualification term starts on that day and ends on December 31, 2015.
Rolling Backward
A rolling-backward term calculates absence entitlements based on the total duration of absences for a specific time period
that precedes the absence start date. For example, if you specify a one year rolling period, and the worker's absence start
date is January 1, 2015, then the calculation considers absences scheduled from January 2, 2014. You can also configure
rules to determine how to deal with absences that overlap rolling backward terms.
Rolling Forward
A rolling forward term calculates absence entitlements based on the first date a worker's absence begins and calculates the end date by adding the term duration to the start date. For example, if the term duration is 365 days and the absence start date is 12 February, then the end date will be 11 February of the following year. The rolling forward option evaluates absences between this start date and end date to track plan entitlements for that period.
Absence Duration
The absence duration determines the qualification plan term. For example, if a worker schedules a maternity absence from
January 1, 2015 to April 15, 2015, then that is the duration of the qualification plan term.
Qualification Plan Term Overlap Rules:
When you define a rolling backward plan term for an absence qualification plan, you must select an overlap rule that
determines how to deal with absences where only a partial period overlaps the current term. The examples in this topic will help you understand how you can use the:
• Include rule to assess absences that overlap current and previous terms
• Exclude rule to ignore the entire absence that overlaps the current and previous terms
• Split rule to assess absences falling within the current term only
The Include Rule
If an absence overlaps the beginning of the rolling period, you consider the entire absence in the current assessment period.
Scenario: You defined a six-month rolling-backward term in your qualification plan and set up bands that entitle workers to 20 days absence at full pay and a further 15 days at half pay.
• The assessment period for a worker began on January 1, 2014.
• The worker starts sick leave on July 1, 2014.
Previously, the worker received payment under the same sick leave entitlement plan for 15 working days from December 20,2013 to January 7, 2013.
Because you configured the plan term to use the Include rule, the previous absence that overlaps the current assessment period is considered. So for the absence beginning on July 1, 2014, the worker receives full pay for the first 5 (20 - 15) days of the absence and half-pay for the next 15 days.
The Exclude Rule
If a worker is absent at the beginning of an assessment period, this rule ignores the entire absence that overlaps the period. In the example used in the previous scenario, for a rolling backward term that uses the Exclude rule, the worker receives:
• Full pay for the first 20 days of the absence
• Half pay for the next 15 days
Even though the previous absence overlaps the current assessment period, the worker receives the entitlement band benefits
for the current absence without any deductions.
The following figure shows the usage of the Exclude rule in this scenario.
The Split Rule
This rule assesses overlapping absences that fall within the current plan term only. In the example used in the previous
scenario, for a qualification plan that uses the Split rule, the worker receives full pay for the first 15 (20 - 5) days of the
absence and half pay for the next 15 days.
Qualification Enrollment and Termination Rules: 
Define when you want to enroll or disenroll a worker in the Participation tab of the Create Absence Plan page. Workers
qualify for qualification plan entitlements as a result of an event, such as childbirth. These entitlements stop when workers are
terminated or plan eligibility ends. Configure the plan to:
• Enroll workers in the plan when a worker or an administrator schedules an absence using an absence type
associated with a qualification plan.
• Use a formula if you must consider other aspects or rules that determine when to enroll workers in the plan.
Decide whether ongoing payments under this plan must continue if a worker is:
• Terminated
• Not terminated, but loses eligibility for the plan
Absence Plan Eligibility: Explained
An eligibility profile in Absence Management defines criteria used to determine whether a person qualifies for an accrual or
qualification absence plan. Define eligibility profiles and then associate it with a plan to determine the set of workers who can enroll in that plan. To associate an eligibility profile with an absence plan:
1. Create the eligibility profile using the Manage Eligibility Profiles task in the Absence Administration work area.
2. Associate the eligibility profile with the absence plan using the Manage Absence Plans task.
If you want all workers to be eligible for the absence plan, then do not add an eligibility profile. If a plan does not have an eligibility profile associated with it, then it does not mean that workers are enrolled automatically into the plan. New hires may be enrolled automatically, if that is the option set in the plan definition. Existing workers have to be enrolled manually.
Qualification Bands: Examples
Use qualification bands to determine the payment percentages that workers receive for specific time periods during a long
leave of absence. Use employment criteria, such as length of service, grades, or other factors to filter workers. This topic
shows various types of qualification bands that you can define in the Qualification Band Matrix section on the Create Absence Plan page.
The examples show qualification bands based on the following factors:
• Length of service
• Grade
• Length of service and grade


No Entitlement



Create absence plans of this type to track paid or unpaid absences without maintaining an accrual balance or providing leave entitlements, such as periodic accruals. You can also use plans of this type in combination with a qualification plan. For example, use a no-entitlement plan to pay workers if they are not eligible for a standard maternity absence qualification plan.

Difference between Accrual Plan and Qualification Plan
Accrual Plans :
1.Eligibility determined at point of employment event (example: hire) and employee is enrolled
2.Accruals are run at configured intervals and balances are calculated
3.System evaluates balances as of the absence end date
4.Plan termination based on employment termination or loss of eligibility.
Qualification Plans:
1.Eligibility is used to qualify employee for entitlements when absence is scheduled or recorded
2.System evaluates eligibility and entitlements as of a “qualification date”
3.No enrollment data is held
4.Termination of employment may still require payment of outstanding entitlements

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