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Version - 3: Sikandar Hayat Awan
Version - 3: Sikandar Hayat Awan
Pakistan
Oracle Applications R12 – HRMS & Payroll www.erpstuff.com
The document is composed by using Oracle R12 (RU3 with Global HRMS Patch Applied) on
Linux Red Hat AS 4 update 5 so you may find minor differences of screens or options if you are
not using the same version of Oracle Applications. Please suggest if you think any major feature
is missing and you think that should also be part of this document.
You can post your feedback directly on the web site www.erpstuff.com or email to
admin@erpstuff.com. If both options are not working due to any reason then please email
directly to sikandar_h@hotmail.com.
Thanks
Preface
Anyone who is interested to learn, teach Oracle HRMS and Payroll can use this document for
his/her as a basic reference document. Although the document will cover most of the required
but this is not the whole Oracle HRMS. So please consider it as a basic or reference document.
I will also recommend reading the Oracle Documentation provided by Oracle of each module.
Pre Requisites
Contents
CONTENTS .................................................................................................................................................................................. 4
WORK STRUCTURES ............................................................................................................................................................... 7
1 - RESPONSIBILITY & USER.............................................................................................................................................. 8
1. DEFINE HRMS RESPONSIBILITY .......................................................................................................................................... 8
2. HRMS USER DEFINITION .................................................................................................................................................... 9
2 - KEY FLEXFIELDS DEFINITIONS ................................................................................................................................. 12
1. GRADE KEY FLEXFIELD DEFINITION ................................................................................................................................... 12
2. JOB KEY FLEXFIELD DEFINITION ........................................................................................................................................ 18
3. COST ALLOCATION KEY FLEXFIELD DEFINITION.................................................................................................................. 25
4. POSITION KEY FLEXFIELD DEFINITION ............................................................................................................................... 28
5. PEOPLE GROUP KEY FLEXFIELD DEFINITION ....................................................................................................................... 33
6. COMPETENCE KEY FLEXFIELD DEFINITION .......................................................................................................................... 37
3 - KEY FLEXFIELDS VALUES ............................................................................................................................................. 46
1. GRADE KEY FLEXFIELD VALUES .......................................................................................................................................... 46
2. JOB KEY FLEXFIELD VALUES............................................................................................................................................... 48
3. POSITION KEY FLEXFIELD VALUES...................................................................................................................................... 51
4. PEOPLE GROUP KEY FLEXFIELD VALUES ............................................................................................................................. 54
5. COMPETENCE KEY FLEXFIELD VALUES ................................................................................................................................ 56
4 - LOCATION.......................................................................................................................................................................... 61
1. LOCATION DEFINITION ...................................................................................................................................................... 61
5 - BUSINESS GROUP (BG) ................................................................................................................................................ 61
1. BUSINESS GROUP (BG) DEFINITION .................................................................................................................................. 63
6 - PROFILES ........................................................................................................................................................................... 72
1. SETTING HR: SECURITY PROFILE ...................................................................................................................................... 72
2. SETTING HR:BUSINESS GROUP PROFILE ............................................................................................................................ 73
3. SETTING HR:USER TYPE PROFILE ..................................................................................................................................... 74
7 - ORGANIZATIONS ............................................................................................................................................................ 76
1. DEPARTMENTS (HR ORGANIZATION) DEFINITION .............................................................................................................. 76
8 - JOBS CREATION .............................................................................................................................................................. 79
1. JOBS ENTRY ...................................................................................................................................................................... 79
9 - POSITIONS CREATION ................................................................................................................................................. 81
1. POSITIONS ENTRY ............................................................................................................................................................. 81
10 - GRADES CREATION ...................................................................................................................................................... 85
1. GRADES ENTRY ................................................................................................................................................................. 85
11 - POSITION HIERARCHIES........................................................................................................................................... 87
1. POSITION HIERARCHY DEFINITION .................................................................................................................................... 87
2. POSITION DIAGRAMMER .................................................................................................................................................... 92
PEOPLE MANAGEMENT ........................................................................................................................................................ 93
12 - EMPLOYEE CREATION ................................................................................................................................................. 94
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Work
Structures
Field Value
Responsibility Name XX HRMS
Application Human Resources
Responsibility Key XX_HRMS
Description XX HRMS Super User
Effective Date From Default (Current Date)
Data Group Name Standard
Data Group Application Human Resources
Menu GLB SHRMS Navigator
Request Group Name Global SHRMS Reports & Process
Request Group Application Human Resources
2.3. After searching the XX USER we will attach the Responsibility XX Fixed Assets created
above with this user.
Field Value
Responsibility XX HRMS
Application Human Resources
Security Group Standard
2 - Key Flexfields
Definitions
Points to Consider
Before creating Key Flexfields consider the following points,
Field Value
Code XX_GRADE_FLEXFIELD
Title XX GRADE FLEXFIELD
Description (Optional) XX Grade Flexfield for demo.
Field Value
Number 1
Name Grade Name
Windows Prompt Grade Name
Column SEGMENT1
Field Value
Value Set Name XX_GRADENAME_VS
Description XX Grade Name value set for demo.
List Type List of Values
Security Type No Security
Format Type Char
Maximum Size 20
Uppercase Only (A-Z) Checked (Yes)
Validation Type Independent
Field Value
Number 2
Name Grade Level
Windows Prompt Grade Level
Column SEGMENT2
1.10. Click Value Set Open (button) and enter following information,
Field Value
Value Set Name XX_GRADELEVEL_VS
Description XX Grade Level value set for demo.
List Type List of Values
Security Type No Security
Format Type Char
Maximum Size 2
Uppercase Only (A-Z) Checked (Yes)
Validation Type Independent
1.15. Click OK (button) and close the form. The Flexfield will be compiled.
Field Value
Code XX_JOB_FLEXFIELD
Title XX JOB FLEXFIELD
Description (Optional) XX JOB Flexfield for demo.
Field Value
Number 1
Name Job Name
Windows Prompt Job Name
Column SEGMENT1
Field Value
Value Set Name XX_JOB_NAME_VS
Description XX JOB Name value set for demo.
List Type List of Values
Security Type No Security
Format Type Char
Maximum Size 20
Uppercase Only (A-Z) Checked (Yes)
Validation Type Independent
Field Value
Number 2
Name Job Code
Windows Prompt Job Code
Column SEGMENT2
Field Value
Value Set Name XX_JOB_CODE_VS
Description XX JOB Code value set for demo.
List Type List of Values
Security Type No Security
Format Type Char
Maximum Size 20
Uppercase Only (A-Z) Checked (Yes)
Validation Type Dependent
2.11. Save the data and click Edit Information (button) and enter the following information.
Field Value
Independent Value Set Name XX_JOB_NAME_VS
Description Will be auto displayed.
Dependent Default Value NONE
Description None
2.12. Enter the Value Set name in the Value Set field on segments Summary screen.
Note: The next few screens are same as covered in the Grade section.
3. Cost Allocation Key Flexfield Definition
3.1. Open the Key Flexfield Segments form
Field Value
Code XX_COST_ALLOCATION_FLEXFIELD
Title XX COST ALLOCATION FLEXFIELD
Description (Optional) XX Cost Allocation Flexfield for demo.
Note: Here we will use Value Set we defined for General Ledger.
Field Values
Number 1 2
Name Cost Center Account Code
Windows Prompt Cost Center Account Code
Column SEGMENT1 SEGMENT2
Value Set XX_Cost_Center XX_Accounts
Flexfield Qualifier Organization Element
Note: To assign Flexfield Qualifier you will have to save the data first.
Note: The Cost Center segment will be displayed in organization costing information while
the Account Code will be assigned at the time of element creation.
Note: The next few screens are same as covered in the Grade section.
Field Value
Code XX_POSITION_FLEXFIELD
Title XX POSITION FLEXFIELD
Description (Optional) XX Position Flexfield for demo.
Field Value
Number 1
Name Position Name
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Field Value
Value Set Name XX_POSITIONNAME_VS
Description XX Position Name value set for demo.
List Type List of Values
Security Type No Security
Format Type Char
Maximum Size 30
Uppercase Only (A-Z) Checked (Yes)
Validation Type Independent
Field Value
Number 2
Name Position Region
Windows Prompt Position Region
Column SEGMENT2
Field Value
Value Set Name XX_POSITIONREGION_VS
Description XX Position Region value set for demo.
List Type List of Values
Security Type No Security
Format Type Char
Maximum Size 20
Uppercase Only (A-Z) Checked (Yes)
Validation Type Independent
Note: The next few screens are same as covered in the Grade section.
Field Value
Code XX_PEOPLE_GROUP_FLEXFIELD
Title XX PEOPLE GROUP FLEXFIELD
Description (Optional) XX People Group Flexfield for demo.
Field Value
Number 1
Name Union
Windows Prompt Union
Column SEGMENT1
Field Value
Value Set Name XX_UNION_VS
Description XX Union value set for demo.
List Type List of Values
Security Type No Security
Format Type Char
Maximum Size 30
Uppercase Only (A-Z) Checked (Yes)
Validation Type Independent
Note: The next few screens are same as covered in the Grade section.
Field Value
Code XX_COMPETENCE_FLEXFIELD
Title XX COMPETENCE FLEXFIELD
Description (Optional) XX Competence Flexfield for demo.
Field Value
Number 1
Name Skill
Windows Prompt Skill
Column SEGMENT1
Field Value
Value Set Name XX_SKILL_VS
Description XX Skill value set for demo.
List Type List of Values
Security Type No Security
Format Type Char
Maximum Size 30
Uppercase Only (A-Z) Checked (Yes)
Validation Type Independent
Field Value
Number 2
Name Level
Windows Prompt Level
Column SEGMENT2
Field Value
Value Set Name XX_SKILLLEVEL_VS
Description XX Skill Level value set for demo.
List Type List of Values
Security Type No Security
Format Type Char
Maximum Size 30
Uppercase Only (A-Z) Checked (Yes)
Validation Type Dependent
6.11. Save the data and click Edit Information (button) and enter the following information.
Field Value
Independent Value Set Name XX_SKILL_VS
Description Will be auto displayed.
Dependent Default Value 1
Description 1
6.12. Enter the Value Set name in the Value Set field on segments Summary screen.
6.15. I received the above error as I had not assigned the following Flexfield Qualifier.
Note: The next few screens are same as covered in the Grade section.
Check the status of all requests and all should be completed with Normal status.
1.2. Select Value Set in Find Values By region and enter XX_GRADENAME_VS in the
names field.
Grade
EXECUTIVE
MANAGEMENT
SUPERVISOR
1.5. Save the information and search for XX_GRADELEVEL_VS and enter the following
information.
Levels
1
2
3
4
2.4. Save data and search for XX_JOB_CODE_VS to enter Job Codes.
2.5. Save data and click in the header and user up/down arrow keys to move to different
values of Job Name. Do this for all values and assigned job code.
Position
CEO
MANAGER IT
MANAGER FN
MANAGER HR
DEPUTY MANAGER IT
DEPUTY MANAGER FN
DEPUTY MANAGER HR
SENIOR DBA
ACCOUNT OFFICER FN
RECRUITMENT OFFICER
Position
NORTH
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SOUTH
EAST
WEST
Values
MUSLIM LEAGUE
PEOPLE PARTY
JAMAT-E-ISLAMAI
NONE
5.5. Save the data and then click in the Independent Value and press down arrow key.
5.6. Save the data and then click in the Independent Value and press down arrow key and
enter for all the Skill.
4 - Location
1. Location Definition
1.1. Assign Global Super HRMS Manager responsibility to XX USER.
1.2. Switch to HRMS responsibility.
1.3. To define location open the location form,
Note: Uncheck the Global check box if you want the location to only be available within the
default Business Group of your current responsibility. Accept the default if you want the
location to be a global location and therefore available to all Business Groups. If you are
setting up a global location, the location name must be unique across all Business Groups.
A Business Group (BG) holds information about the components of work structures such as
jobs, grades and positions. At the BG level we set up the legislative rules, terms of employment,
remuneration policies and employee work patterns. Oracle HRMS provides the flexibility to
define enterprise the following four basic configurations models,
We will create only one BG for demonstration while you can create more than one BG’s in your
enterprise to keep sets of data separated. The major reason for creating many business groups
is that your enterprise is present in many countries. The other reasons for creation of more than
one BG are,
Organization Structure
XX COMPANY
Business Group
HR Organization
CEO
XX IT XX FN XX HR
Information Technology Finance Department Human Resource Department
HR Organization HR Organization HR Organization
Field Value
Name XX COMPANY
Type Company
Location XX Location
Internal or External Internal
1.4. Before moving into Organization Classification region save the information.
1.5. Select Business Group from the LOV in the Name field.
Field Value
1.6. Save the information and then click Others (button) to enter Business Group
information.
Note: The * on the start denotes the mandatory information and you will have to provide
information while all others are optional.
1.7. Select Business Group Info from the displayed LOV and click OK (button.
1.8. Click in the white area of Business Group Info field and the following screen will
appear.
Warning: All the information entered on this screen will affect the Business Group and you
will not be able to change saved data on this screen.
1.9. Select Business Group, click the Enabled check box and click (B) Others.
1.10. Enter the required information on the screen displayed as following,
Field Value
Note: PAYE Reference – this must be in the format of 999/123456 or 999/C12345 – the first
3 must be numeric and are the Tax District, the last characters are the Tax Reference.
1.18. Now assign GRE / Legal Entity where you can assign Financials Set of Books to your
organization.
Field Value
Organization Classifications Name GRE / Legal Entity
Enabled ;
1.19. Now the next step is to make our Business Group a HR Organization as we will hire
CEO in this organization. Keep in mind that which organization will have employees
must be an HR Organization. Click in the 2nd line to define HR Organization and enter
the following information.
Field Value
Organization Classifications HR Organization
Name
Enabled ;
6 - Profiles
Now we have to assign our created Business Group to the responsibility we already created at
the start. We will have to assign two other profiles as well. There are following three profiles
which we need to set for our XX HRMS responsibility.
There is a space in HR: Security Profile after colon but no space in other profile options.
1.2. Enter Responsibility name XX HRMS and profile HR: Security Profile.
3.3. Select HR with Payroll User from the LOV and click OK (button).
7 - Organizations
1. Departments (HR Organization) Definition
1.1. Now switch to XX HRMS Responsibility and this is the place where normally people
make mistakes. They do not switch to the responsibility in order to make their
Business Group as container and create different organizations (Operating Units,
Inventory Organizations, HR Organizations etc.) which are not later accessible in their
business group.
1.2. Open the Description form,
1.3. Click New (A) (button), and define three departments with the following information.
Field Value
Name XX IT XX HR XX FN
Type Department Department Department
Location XX LOCATION PK XX LOCATION PK XX LOCATION PK
Internal or External Internal Internal Internal
Organization Classification HR Organization HR Organization HR Organization
Enabled ; ; ;
Note: Internal Organizations are Departments, Sections or Cost Centers and the External
Organizations are Tax Offices, Recruitment Agencies. You can define as many
organizations (Zone, Division, Department, Sections) but here for practice we have
defined only 4 (Company 1, Departments 3).
8 - Jobs Creation
1. Jobs Entry
1.1. Keep in the XX HRMS responsibility.
1.2. Open the Description form
9 - Positions Creation
1. Positions Entry
We will define following positions.
1.4. Click Hiring Information tab and enter 1 in the FTE (Full Time Equivalent) as our Type
is Single Incumbent.
10 - Grades Creation
1. Grades Entry
1.1. Open the Description form
Grade Level
EXECUTIVE 1
MANAGEMENT 1,2,3
SUPERVISOR 1
1.3. After Grade Name and Grade Level selection click on OK (B).
1.4. Enter From date from where you want this grade to take effect or you will assign the
grade. Better to keep it old date so if there are any back date transactions then you
will be able to assign.
11 - Position Hierarchies
1. Position Hierarchy Definition
1.2. Enter unique Hierarchy Name and click Primary check box if this is your Primary
hierarchy.
1.8. Enter Version Number and Date From and save the data.
1.9. Click in the Position Name and press F11 to search the top position CEO.EAST and the
execute query by pressing Ctrl+F11.
1.10. Then click in the Subordinates Name field.
1.11. Enter all subordinates who are reporting to CEO in our case all Managers.
Note: Employee name will be automatically displayed in the Holders Name field once these
positions will be assigned to relevant employees on the People Management form.
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1.12. Now click the MANAGER IT.EAST line and click the Blue Down arrow key to define the
Manager IT subordinate.
1.13. Position MANAGER IT.EAST has jumped above in the Position Name field. Enter all
subordinates who are reporting to CEO in our case all Managers. Select DEPUTY
MANAGER IT.EAST as subordinates and save the information.
1.14. Now to define subordinate of DUPUTY MANAGER IT.EAST click blue Down arrow key
and DUPUTY MANAGER IT.EAST position will be shifted in the Position Name field.
2. Position Diagrammer
2.1. Open the Diagrammer form,
People
Management
12 - Employee Creation
1. Employee Creation
1.4. Enter the required information on the form. As we are creating an employee so we
will select Create Employment in the Action field. Good thing is that when you will
select Title the Gender field is automatically populated.
Note: When you enter/update the address and you get error “FRM-40735: ON-
INSERT trigger raised unhandled exception ORA-29273” then to resolve this error you
need to take few steps as System Administrator.
Search for Application Proxy port and in my case I set it to 8000. After saving this
search for Applications Server-Side Proxy Host And Domain and set it accordingly. In
my case it is vision.erpstuff.com. Save and close the form.
Payroll Setup
13 - Introduction to Oracle
Payroll
1. QuickPay
QuickPay is the process which is used to pay to single employee. It is useful when there is a
need to check new elements definition result before applying on all employees. QuickPay is
also used for instant updates for new hiring, late entries, and terminations.
2. Batch Processing
When we have to process the payroll for more than one employee then we use batch
processing. That is running a request Payroll Run.
3. Payment Methods
In Oracle Payroll we can pay our employees using different payment methods like Check
(Cheque), Direct Deposit, Cash or a combination of different payment methods. There are
certain limitations of localizations.
4. Currency
We can pay using single currency or multiple currencies. The currency is defaulted from the
Business group.
5. Payroll(s)
We define a payroll for a number of employees who share the same payroll calendar and
therefore receive payment on the same date, and at the same regular frequency.
7. Scheduled Run
The Scheduled Run Date is the date scheduled for the Regular run of the payroll in each
period.
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14 - Consolidation Set
1. Define Consolidation Set
The consolidation set is used for consolidating the result of various payrolls and post payroll
processes.
15 - Payment Methods
1. Define Payment Methods
1.5. Click in the Bank Details will open the Bank Details window so provide the bank
related information.
16 - Elements
1. Define Elements
For better understanding of the elements we will define different type of elements and will
assign them to the employees and will view the results after processing.
Element Classification
Location Allowance Earning
COLA (Grade Based) Earning
Union Fund Deduction
Entitled Car (Grade Based) Information
Monthly Salary Earning
1.2. By default the current date will be the effective date and as this field is read only and
you cannot update it directly. So after opening the form we will use the Alter Effective
Date button from the tool bar. The button labeled with date 31.
Note: If the Type is Nonrecurring then this element will not appear on the Salary Basis
screen.
1.20. Save the data.
2.6. Check the User Enterable check box if users can enter a value for this input.
2.7. We can scroll to the right to enter default value and validations.
3.3. Provide required information and scroll to right to enter default value.
3.4. Save and close the form.
4.3. Provide required information and scroll to right to enter default value.
4.4. Save and close the form.
5.4. Enter the information as shown above and save the data.
5.5. Close the form.
17 - Salary Basis
1. Define Salary Basis
Salary Basis is the duration for which a salary is quoted, for example, hourly, monthly or annually.
The Salary Basis window is used to define a salary basis for each salary element to be used for salary
administration.
1.1. Open the form,
1.2. Enter the name of the salary basis and select Basis.
1.3. Select the name of the salary element and input value associated with this salary
basis.
1.4. Save the data.
1.5. Repeat the above steps for each earning element.
18 - Payroll
1. Define Payroll
1.3. After selecting Consolidation Set then the cursor will jump to Cost field. Here we will
not provide any account as we have not configured Oracle General Ledger.
1.4. Click in Statutory Information field and enter the required information.
Note: Check the Negative Payment Allowed check box if you want the PrePayments
process to include negative payments. If you leave the box unchecked, the PrePayments
process ignores negative payments
Note: Check the Cut Off date that is the final date for entering or changing payroll
information before a run.
19 - Element Link
1. Define Element Link
The first element we will create link is the XX Monthly Salary and in search criteria we will give Salary
Basis and Payroll. So all those employees having salary basis XX Monthly Salary and Payroll is XX
Monthly Payroll will have this element. From here you can imagine that we can keep more than one
Salary Basis say monthly and annually etc.
1.1. Open the form,
Note: Check the Standard check box if you want all employees who are made eligible by the
link to receive the element automatically but there are few restrictions as well.
2.2. Here we checked Standard so this element will be automatically assigned with the
default values to those employees who will have SUPERVISOR.1 grade, Location XX
LOCATION PK, Salary Basis XX Monthly Salary and Payroll XX Monthly Payroll.
2.3. After saving the data click on Input Values.
3.2. Save and click on Input Value to verify the default value.
4.2. We can’t make this element link as Standard because there are mandatory (required)
values without having defaults. So if we will try to keep it standard then what will be
the initial value when this element will be assigned? We have not assigned default
values because each employee may have different car.
4.3. Now we will create another link to assign car to our CEO else he will not give anyone
any car haaaa.
4.8. The default value is assigned and if required you can change it.
4.9. Now we will update the car information of an employee. So search the employee
CEO.
4.10. As the Company Car link was not a Standard so we will have to fist assign it manually
to each entitled employee.
Salary
Administration
20 - Salary Administration
Now we will assign salary to all our defined employees. Here we will keep a the following standard,
1.2. Search each employee and assign Salary Basis and Payroll.
1.3. Here we have selected XX Monthly Payroll in the Payroll field and XX Monthly
Salary in the Salary Basis field.
1.4. While selection click on Correction (B).
1.5. Save the information.
1.6. We will also assign salary to each employee as well. So click Salary (B).
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1.9. Add Salary of each employee and as I kept the Status to Approved then I don’t need
to approve as we are entering salaries first time. In case of approval you will have to
perform approval from Salary Management form.
1.10. Open Salary Management form,
1.11. I have used Ctrl + F11 to view all employees and here you can check all salaries are
approved. If not then select that line and click on Approve (B).
Important: By default there will be no Approve button on this form. To enable this function
(Salary Administration:Approve) we need to add it in the Menu of our responsibility.
1.14. Click the XX Monthly Salary lines and click on Entry Values (B).
2. Salary Administration
Instead of entering salary from the People assignment form you can use Salary
Administration page under FastPath menu.
1.2. Search a specific employee or enter % in the Number field and click on Go (B).
Payroll
Processing
21 - Payroll Processing
Introduction
1. Payroll Processes
In the Payroll processing we will cover the following areas.
2. Processing Activities
The payroll processing consists of the following activities,
Activity Description
Data Entry Data entry is carried out during
the month till cut-off date. In
our case it is EOM – 5.
Cut-off EOM - 5
Payroll Run
Run Prepayment
Payment
Costing
4. Process Rollback
A payroll run process can be rolled back and is useful when you want to check the processing and wants
to verify the results. So process, verify, rollback and process again.
7. Payment Invoice
There is no interface of Oracle Payroll and Accounts Payable to create an Invoice automatically. From
Payroll data can be transferred to GL based on the Cost Allocation Flexfield defined and you will have to
create a manual invoice in the Accounts Payable module.
22 - QuickPay
1. QuickPay
We will process the Payroll of single employee using QuickPay. Search the employee using
Or
1.10. The status is Complete so now to check the output click on View Results (B).
1.14. Close this screen and open XX Union Fund a Voluntary Deduction.
1.16. If there is any mistake then you can make correction and use Retry Run option to
reprocess.
1.17. Now to run the prepayment process click on Start Pre-payments (B).
23 - Batch Processiing
2. PrePayment Process
2.1. Open the form,
3. Costing Process
3.1. Open the form,
4. Transfer to GL
4.1. Open the form,
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Note: Although we have not configured Financial part but just wanted to show the steps.