Oracle Fusion HCM Cloud Absence Management

Study Notes

May 31, 2025

Contents
1 Introduction to Oracle Fusion HCM Absence Management . . . . . . . . . . . 3
1.1 Course Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
1.2 Key Components . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

2 Absence Management Implementation Checklist . . . . . . . . . . . . . . . . . 3

2.1 Step 1: Pre-Implementation Review . . . . . . . . . . . . . . . . . . . . . 4
2.2 Step 2: Configure Lookups, Value Sets, and Flexfields . . . . . . . . . . . 4
2.3 Step 3: Create Repeating Time Periods . . . . . . . . . . . . . . . . . . . 4
2.4 Step 4: Define Eligibility Profiles . . . . . . . . . . . . . . . . . . . . . . 4
2.5 Step 5: Create Derived Factors . . . . . . . . . . . . . . . . . . . . . . . 5
2.6 Step 6: Create Absence Plans . . . . . . . . . . . . . . . . . . . . . . . . 5
2.7 Step 7: Configure Rate Definitions . . . . . . . . . . . . . . . . . . . . . 5
2.8 Step 8: Define Payroll Elements . . . . . . . . . . . . . . . . . . . . . . . 6
2.9 Step 9: Create Absence Types . . . . . . . . . . . . . . . . . . . . . . . . 6
2.10 Step 10: Set Up Absence Certifications . . . . . . . . . . . . . . . . . . . 6
2.11 Step 11: Configure Absence Processes . . . . . . . . . . . . . . . . . . . . 6
2.12 Step 12: Integrate with Payroll . . . . . . . . . . . . . . . . . . . . . . . 6
2.13 Step 13: Load Absence Data . . . . . . . . . . . . . . . . . . . . . . . . . 7
2.14 Step 14: Define HCM Extracts . . . . . . . . . . . . . . . . . . . . . . . 7

3 Fast Formulas in Absence Management . . . . . . . . . . . . . . . . . . . . . . 7

3.1 Key Fast Formula Types . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
3.2 Formula Components . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
3.3 Example: Vesting Period Formula . . . . . . . . . . . . . . . . . . . . . . 8

4 Case Study: Annual Vacation Absence Type . . . . . . . . . . . . . . . . . . . 8

4.1 Business Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
4.2 Implementation Steps . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

5 Integration with Global Payroll . . . . . . . . . . . . . . . . . . . . . . . . . . 10

6 Best Practices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

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7 References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

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1 Introduction to Oracle Fusion HCM Absence Management
Oracle Fusion HCM Cloud Absence Management enables organizations to efficiently man-
age employee absences by defining and administering various absence plans and types.
This module integrates with Oracle Fusion Global Payroll and Time and Labor to en-
sure seamless processing of absence-related data. The implementation process involves
configuring lookups, value sets, flexfields, absence plans, types, and categories, ensuring
compliance with organizational leave policies.

1.1 Course Objectives

• Understand the setup and configuration of Absence Management components.

• Learn to create and manage absence plans, types, and certifications.

• Integrate Absence Management with payroll and time management systems.

• Utilize Fast Formulas for dynamic absence calculations.

• Configure eligibility profiles and rate definitions for accurate entitlement allocation.

1.2 Key Components

• Absence Plans: Define rules for accruals, qualifications, or no-entitlement scenarios.

• Absence Types: Categorize absences (e.g., vacation, sick leave) with associated
rules.

• Absence Categories: Group absence types for reporting purposes.

• Eligibility Profiles: Restrict plan participation based on criteria like length of service
or job role.

• Fast Formulas: Enable dynamic calculations for accruals, vesting, and payments.

• Rate Definitions: Calculate payment rates for absences.

Absence Plans Absence Types Absence Categories

Eligibility Profiles Fast Formulas Rate Definitions

Figure 1: Absence Management Component Relationships

2 Absence Management Implementation Checklist

The following steps outline the implementation process for Oracle Fusion HCM Cloud
Absence Management, based on the provided documentation and standard practices.

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2.1 Step 1: Pre-Implementation Review
• Review setup tasks in the Absence Management functional area via Functional
Setup Manager (FSM).

• Ensure access to roles such as Human Resource Specialist for configuration permis-
sions.

• Understand organizational leave policies and requirements.

2.2 Step 2: Configure Lookups, Value Sets, and Flexfields

• Lookups: Define lists of values (standard, extensible, or user-defined) for user input
fields.

• Value Sets: Create enterprise-specific validation rules for data entry.

• Flexfields: Add custom fields to store additional absence-related data.

Lookups Value Sets Flexfields

User Input Validation

Figure 2: Data Validation Components

2.3 Step 3: Create Repeating Time Periods

• Define periods for accrual calculations (e.g., monthly, biweekly).

• Navigation: Navigator > Workforce Management > Absence Administration >

Manage Repeating Time Periods.

• Example: For monthly accruals, set Period Type to Monthly and Sample Start
Date to the plan cycle start (e.g., 1st January).

2.4 Step 4: Define Eligibility Profiles

• Create profiles to restrict plan participation based on criteria like employment sta-
tus or length of service.

• Navigation: Navigator > Workforce Management > Absence Administration >

Manage Eligibility Profiles.

• Example: For full-time employees with active payroll, define criteria under Em-
ployment tab (e.g., Assignment Status: Active, Assignment Category: Full-time).

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2.5 Step 5: Create Derived Factors
• Define factors like length of service for dynamic eligibility.

• Navigation: Navigator > Workforce Management > Absence Administration >

Manage Derived Factors.

• Example: For employees with >10 years of service, set Unit of Measure to Years,
Period Start Date Rule to Date of Hire, and Determination Rule to As of event
date.

2.6 Step 6: Create Absence Plans

• Types of Plans:

– Accrual: For plans like vacation where employees accrue leave over time.

– Qualification: For event-based leaves like maternity, with payment percent-

ages.

– No Entitlement: For tracking absences without accruals (e.g., unpaid leave).

– Compensatory: For earned time off that expires.

– Donation: For donating paid time off.

– Agreement: For shared parental leave agreements.

• Navigation: Navigator > Workforce Management > Absence Administration >

Manage Absence Plans.

• Configure rules for accrual terms, eligibility, enrollment, limits, and payments.

Accrual Qualification No Entitlement

Compensatory Donation Agreement

Absence Plans

Figure 3: Absence Plan Types

2.7 Step 7: Configure Rate Definitions

• Define rates for calculating absence payments.

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 • Navigation: Navigator > Workforce Management > Absence Administration >
Manage Rate Definitions.

• Specify periodicity, reference date, and minimum/maximum values.

2.8 Step 8: Define Payroll Elements

• Create elements for processing absence payments.

• Navigation: Navigator > My Client Groups > Elements.

• Select primary classification as Absence and secondary classifications (e.g., Vaca-

tion, Sickness).

• Configure absence details, accrual liability, and payment questions.

2.9 Step 9: Create Absence Types

• Define absence types (e.g., Annual Vacation, Sick Leave) and associate with plans,
reasons, and certifications.

• Navigation: Navigator > Workforce Management > Absence Administration >

Manage Absence Types.

• Configure display features, approval rules, and duration limits.

2.10 Step 10: Set Up Absence Certifications

• Define certification requirements (e.g., medical certificates) for specific absences.

• Navigation: Navigator > Workforce Management > Absence Administration >

Manage Absence Certifications.

• Specify triggers and actions for certification events.

2.11 Step 11: Configure Absence Processes

• Set up processes to evaluate absences, update enrollments, and calculate balances.

• Navigation: Navigator > Workforce Management > Absence Administration >

Schedule and Monitor Absence Processes.

2.12 Step 12: Integrate with Payroll

• Enable payroll integration by selecting Transfer absence payment information for
payroll processing in the absence plan.

• Associate absence elements with calculation components on the person’s calculation

card.

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 • Use HCM Data Loader to import absence records from third-party applications.

2.13 Step 13: Load Absence Data

• Use integrated workbooks or HCM Spreadsheet Data Loader to upload absence
data.

• Navigation: Navigator > My Client Groups > Data Exchange > HCM Spreadsheet
Data Loader.

2.14 Step 14: Define HCM Extracts

• Create extracts for reconciling absence and payroll data.

• Navigation: Navigator > My Client Groups > Data Exchange > Manage HCM
Extracts.

3 Fast Formulas in Absence Management

Fast Formulas are used to define dynamic rules for absence calculations. They use simple
English and basic mathematical functions to handle scenarios like vesting periods, accrual
rates, and payment calculations.

3.1 Key Fast Formula Types

• Global Absence Vesting Period: Defines waiting periods before employees can use
accrued leave.

• Accrual Formulas: Calculate accrual rates and balances.

• Qualification Formulas: Determine payment percentages for qualification plans.

• Absence Type Formulas: Validate and convert absence durations.

3.2 Formula Components

• Assignment Statements: Assign values to variables (e.g., wage = hours * rate).

• Return Statements: Pass results back to the application.

• Variables: Input, output, and local variables for storing data.

• Expressions: Mathematical or logical operations.

• Conditions: If-then-else logic for dynamic calculations.

• Comments: Document the formula’s purpose and logic.

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 Fast Formula

Assignment Statements Return Statements

Variables

Expressions Comments Conditions

Figure 4: Fast Formula Components

3.3 Example: Vesting Period Formula

/* Formula Name: Global Absence Vesting Period
Purpose: Enforce 30-day vesting period for interns/graduates
Input: Person Assignment User Person Type
Output: Vesting Unit of Measurement, Vesting Units */
DEFAULT FOR VESTING_UNIT_OF_MEASURE IS ’C’
DEFAULT FOR VESTING_UNITS IS 0
IF PERSON_ASSIGNMENT_USER_PERSON_TYPE != ’Worker’ THEN
(
VESTING_UNIT_OF_MEASURE = ’C’
VESTING_UNITS = 30
)
RETURN VESTING_UNIT_OF_MEASURE, VESTING_UNITS

4 Case Study: Annual Vacation Absence Type

4.1 Business Requirements
• Absence Type: Annual Vacation for full-time, active payroll employees.

• Entitlement: 24 days/year for employees with >10 years of service; 18 days/year

otherwise.

• Accrual: Monthly, at the end of each month.

• Carryover: Maximum 5 days to the next year.

• Maximum Balance: 30 days.

• Overdraw: Allowed up to -2 days.

• Maximum Absence Duration: 5 days per request.

• HR Administrator Access: Adjust balances as needed.

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4.2 Implementation Steps
1. Create Eligibility Profile:

• Navigation: Navigator > Workforce Management > Absence Administration

> Manage Eligibility Profiles.

• Name: Full-Time Active Payroll.

• Criteria: Assignment Status = Active, Assignment Category = Full-time.

2. Create Derived Factor:

• Navigation: Navigator > Workforce Management > Absence Administration

> Manage Derived Factors.

• Name: Length of Service > 10 Years.

• Unit of Measure: Years, Period Start Date Rule: Date of Hire.

3. Create Repeating Time Period:

• Navigation: Navigator > Workforce Management > Absence Administration

> Manage Repeating Time Periods.

• Name: Monthly Accrual.

• Period Type: Monthly, Sample Start Date: 1st January.

4. Create Absence Plan:

• Navigation: Navigator > Workforce Management > Absence Administration

> Manage Absence Plans.

• Type: Accrual.

• Name: Annual Vacation.

• Accrual Rules:

– Frequency: Monthly.

– Rate: 2 days/month (>10 years), 1.5 days/month (otherwise).

– Carryover Limit: 5 days.

– Ceiling: 30 days.

– Negative Balance: -2 days.

• Associate Eligibility Profile and Derived Factor.

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 5. Create Absence Type:

• Navigation: Navigator > Workforce Management > Absence Administration

> Manage Absence Types.

• Name: Annual Vacation.

• Maximum Duration: 5 days.

• Associate with Annual Vacation plan.

6. Configure HR Administrator Access:

• Assign role permissions to adjust balances via Manage Absences and Entitle-
ments.

Eligibility Profile Derived Factor Repeating Time Period

Absence Plan

Absence Type

HR Access

Figure 5: Annual Vacation Setup Flow

5 Integration with Global Payroll

• Steps:

1. Create absence plan and associate with payroll elements.

2. Define absence types and link to plans.

3. Create rate definitions for payment calculations.

4. Configure elements with primary classification Absence.

5. Enable payroll integration in the plan’s Payroll Integration section.

6. Enroll employees and run accruals.

• Data Transfer: Absence records are transferred to payroll calculation cards as sum-
mary and daily breakdown entries.

• Validation: Use reports like Payroll Register Report or Statement of Earnings to

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 verify absence balances.

6 Best Practices
• Use FSM for structured setup and tracking.

• Test Fast Formulas in a sandbox environment before deployment.

• Regularly audit absence data using HCM Extracts.

• Ensure clear documentation of eligibility criteria and plan rules.

• Leverage HCM Experience Design Studio to customize absence entry fields.

7 References
• Oracle Fusion Cloud HCM Documentation: https://docs.oracle.com/en/cloud/saas/
human-resources

• Oracle Support: https://support.oracle.com

• Oracle Unified Methodology (OUM) for implementation guidelines.

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