What is Legal Entity and how to create Legal entity in Oracle HCM with real time example ?

What is Legal Entity ?

- In simple language , legal entity is a legal organization -

- A registered office / legal office which needs permissions , tax , docs , incomes .

- You can also mark these legal entity as Payroll statutory unit

- Legal entities are required to pay payroll tax

- We can register payroll statutory units to pay and report on payroll tax and social insurance for your legal entities

- When you are not certain about the number, you can create the Legal entities automatically , by using Enterprise Structures Configurator . But the prerequisite for this is you first need to identify all the countries in which your enterprise operates

How to create Legal entity with real time example ?

Followings are the steps to create and manage legal entity -

step 1 : Select Setup and Maintenance

Step 2: Go to Task — Mange Legal Entities

Step 3 — Create New Legal Entity and Apply and Go to Task

Step 4 — Go to + (plus) to create new Legal entity

Step 5 — you will land up on below page

Step 6 — Select the country , Enter name of LE , Legal Entity Identifier and other details

here i am taking one example for your reference -

1) Country — United State

2) Name — US1 Legal Entity

3) Legal Entity Identifier — LE_US_1

4) Start Date , End date is optional

5) Select checkbox — Payroll Statutory Unit (if you want legal entity to be registered to report payroll tax) this is optional

6)Legal employer check box -select if your legal entity contains employees

Enter Registration Information -

7) Legal Address — Search and select (eg .521 PARK AVENUE/CHICAGO, ILLINOIS 60624)

8)Enter EIN (Employee identification Number)

9)Enter Legal Reporting Unit Registration Number

Save and Close .

**CHECKOUT this article -Oracle HCM Core HR setup in detail**