Oracle Fusion HCM: Approval Rules & Processes

Approval Rules in Oracle Fusion HCM

1. What Are Approval Rules?

Approval Rules In Oracle Fusion Hcm Are Workflow-Based Policies That Determine How A Transaction Is
Routed For Approval Before It Is Completed. These Rules Ensure That All Changes Related To Hr, Payroll,
Benefits, Or Workforce Structures Comply With Company Policies And Require The Necessary
Authorizations Before Being Finalized.

2. How Are Approval Rules Configured?

Approval rules in Oracle Fusion HCM can be configured using two primary tools:

A. BPM Worklist (Business Process Management Worklist)

Provides an interactive user interface to define approval hierarchies and workflows.

Allows modification of routing rules for approvals.

Supports escalation, delegation, and notification settings.

B. Transaction Console

Used to monitor, troubleshoot, and take action on pending approval transactions.

Administrators can withdraw, reassign, or resubmit transactions that are stuck in the approval process.

3. Types of Approval Routing

Oracle Fusion HCM allows different ways to route approval requests based on the business process
requirements. Some common types include:

Self-Approval – If the initiator has the necessary approval authority, the transaction is automatically
approved.

Single-Level Approval – The request goes to one approver, such as a manager or HR specialist.

Multi-Level Approval – The request goes through multiple layers of approvals before finalization (e.g., first-
line manager → HR → finance).

Parallel Approval – The request is sent to multiple approvers at the same time, and all must approve before
the transaction proceeds.

Hierarchical Approval – Approval follows an organizational hierarchy, such as:

Supervisory hierarchy: Approval follows the reporting manager chain.

Job level hierarchy: Approval is based on job grade or seniority level.

Position hierarchy: Approvals are routed based on position rather than the person occupying the position.

Auto-Approval – If the conditions meet specific criteria, the system automatically approves the transaction.

Delegation Approval – If an approver is on leave, the approval is assigned to a delegate.

Escalation Approval – If the primary approver does not respond within the set timeframe, the request is
escalated to a higher authority.

4. Types of Approvers in Oracle Fusion HCM

Oracle allows multiple types of approvers based on how approvals are routed within the organization:

A. Individual Approvers

Direct User Approval – A specific person (such as an HR manager or a department head) is designated as an
approver for a request.

Supervisory Approver – The transaction is sent to the employee’s direct or indirect manager based on the
supervisory hierarchy.

Self-Approval – The user initiating the request can approve it if they have sufficient authority.

B. Group-Based Approvers

Approval Groups – A predefined set of users who can approve the request collectively.

Job Level Hierarchy – The transaction is routed to an approver based on their job level instead of their
position in the reporting structure.

Position Hierarchy – Approvers are determined based on the position structure instead of employee
assignments.

C. Automated or Delegated Approvers

Delegated Approver – If the primary approver is unavailable, another person is authorized to approve on
their behalf.

Auto-Approval – If the request meets pre-defined conditions (such as a salary increase below a set
percentage), it is automatically approved without human intervention.

Escalation Approver – If the primary approver does not take action within the required timeframe, the
system escalates the request to a higher authority.

5. Key Features of Approval Rules

Flexible Routing: Approvals can follow hierarchy-based rules, role-based routing, or ad-hoc manual
assignment.

Configurable Conditions: Approvals can be triggered based on employee type, transaction type, amount
thresholds, or geographic location.

Notifications & Reminders: The system can send email alerts, in-app notifications, and reminder emails to
ensure timely approval.

Delegation & Escalation: Approvals can be reassigned or escalated if the original approver is unavailable.

Audit & Tracking: Every approval step is logged and auditable for compliance.

Types of Approvers in Oracle Fusion HCM

**Users** - Individual employees or managers assigned as approvers.

2. **Approval Groups** - A predefined set of users for collective approvals.
3. **Supervisory Hierarchy** - Approvals follow direct/indirect reporting hierarchy.
4. **Job Level Hierarchy** - Approvals follow job levels instead of direct reporting.
5. **Position Hierarchy** - Approvals follow position structure rather than employee structure.

1. What is BPM Worklist?

BPM (Business Process Management) Worklist in Oracle Fusion HCM is a centralized application that
manages all approval workflows within the system. It allows users to configure, monitor, and manage
approval rules and processes related to HR transactions such as hiring, termination, promotion, and
compensation changes.

The BPM Worklist is a part of Oracle SOA Suite (Service-Oriented Architecture) and is used to define how
transactions move through the approval hierarchy.

2. Purpose of BPM Worklist in Oracle Fusion HCM

BPM Worklist serves several critical purposes, including:

A. Approval Workflow Management

Helps define approval rules and workflows for different HR transactions.

Allows users to set up single-level, multi-level, parallel, and escalation approvals.

B. Monitoring & Tracking Approvals

Enables tracking of pending, completed, or failed approval requests.

Provides a dashboard for real-time visibility into workflow statuses.

C. Rule Configuration & Customization

Users can modify approval rules based on business policies.

Conditions can be set based on job role, hierarchy, department, and amount thresholds.

D. Delegation & Escalation

Approvers can delegate approvals to another person in case of absence.

If an approver does not respond within a set time, the request is escalated to a higher authority.

E. Notifications & Reminders

Sends email notifications, alerts, and reminders to approvers.

Can be configured to resend reminders at regular intervals if action is not taken.

F. Security & Access Control

Ensures only authorized users can configure or modify approval workflows.

Provides audit logs to track all approval-related activities.

G. Auto-Approval & Expiry Rules

Transactions can be automatically approved if they meet certain conditions.

Approval requests can have an expiration date, triggering escalation if no action is taken.

Hire-to-Retire Approval Process Names

Oracle Fusion HCM follows a structured Hire-to-Retire cycle, covering an employee’s entire journey in an
organization. Different approval processes are involved at each stage, ensuring compliance and policy
enforcement. Below are the key approval process names categorized under the Hire-to-Retire cycle:

1. Hire & Onboarding Stage

Hire an Employee Approval – Required when hiring a new employee.

Add Contingent Worker Approval – Approval process for engaging a contract worker.
Convert Contingent Worker to Employee Approval – Required when a contractor is converted to a full-time
employee.
Rehire Employee Approval – Approval needed when rehiring a former employee.

2. Employee Management & Job Changes

Change Manager Approval – Required when updating an employee’s manager.
Change Assignment Approval – Approval for transferring an employee within the same legal entity.
Global Transfer Approval – Required when transferring an employee to a different legal entity.
Promote Employee Approval – Approval process for employee promotions.
Demotion Approval – Required when moving an employee to a lower-level role.
Change Location Approval – Approval needed when updating an employee's work location.
Change Grade Approval – Required when an employee’s grade is modified.
Change Position Approval – Approval for position-level changes.

3. Compensation & Benefits

Salary Change Approval – Required when increasing or decreasing salary.

One-Time Payment Approval – Approval needed for bonuses, incentives, or special payments.
Stock Option or Equity Compensation Approval – Used when granting stock options to employees.

4. Time, Leave, and Absence Management Leave of Absence Approval – Approval process for requesting
extended leave.
Paid Time Off (PTO) Approval – Approval needed for vacation or sick leave.
Overtime Approval – Required for additional working hours approval.
Shift Change Approval – Required when modifying an employee’s work schedule.

5. Document & Profile Updates

Document of Records (DOR) Update Approval – Approval required for employees modifying their records.
Employee Bank Account Change Approval – Required when updating salary payment details.
Employee Contact Information Update Approval – Approval needed for modifying personal information.
Update Citizenship or Visa Details Approval – Required for international employees.

6. Performance & Goal Management

Performance Evaluation Approval – Approval process for manager reviews and performance ratings.
Goal Setting Approval – Required when an employee sets or modifies goals.
Employee Skill & Qualification Update Approval – Approval required for adding certifications or new
qualifications.

7. Termination & Retirement

Terminate Employee Approval – Required when processing an employee’s resignation or termination.
Retirement Approval – Approval needed when an employee retires.
Reverse Termination Approval – Required when reinstating an employee after termination.

8. Miscellaneous Approvals

Delegation Request Approval – Used when an employee delegates approval tasks to another user.
Mass Update Approval – Required for bulk changes to multiple employees (e.g., mass salary revisions).
Security Role Assignment Approval – Approval needed when assigning new roles to employees.

Role for Viewing Transaction Summary & Setting Up Approval Rules in Oracle Fusion HCM

In Oracle Fusion HCM, the role that provides access to view transaction summaries and configure approval
rules is:

Human Capital Management Application Administrator

(ORA_HRC_HUMAN_CAPITAL_MANAGEMENT_APPLICATION_ADMINISTRATOR)

Key Capabilities of This Role

The HCM Application Administrator role enables users to:

 View and manage the transaction summary in the Transaction Console.

 Configure and modify approval rules using the BPM Worklist.
 Monitor pending, approved, and rejected transactions across different modules.
 Delegate, reassign, or escalate approvals when necessary.
 Analyse approval workflow failures and take corrective actions.
 Modify workflow conditions based on job roles, departments, or approval levels.

Additional Roles with Approval Access

Apart from the HCM Application Administrator, the following roles also have access to approval
configurations:

Role Name Purpose

Manages BPM Worklist

BPM Workflow Administrator
approvals and workflows at a
(ORA_FND_BPM_WORKFLOW_ADMINISTRATOR)
system-wide level.

Has limited access to approval

Human Resource Specialist
rules but can track transaction
(ORA_HRC_HUMAN_RESOURCE_SPECIALIST_JOB)
statuses.

Application Implementation Consultant Configures approval workflows

(ORA_ASM_APPLICATION_IMPLEMENTATION_CONSULTANT) during system setup.

Actions an Admin Can Perform on a Pending Transaction in Transaction Console

In Oracle Fusion HCM, the Transaction Console allows administrators to manage and troubleshoot pending
transactions. Administrators with appropriate roles (such as HCM Application Administrator) can perform
various actions on stalled or pending transactions.

Key Actions Available in Transaction Console

Action Description

View Transaction Details See transaction history, approval status, and workflow details.

Withdraw Transaction Cancel a pending transaction if no longer needed.

Resubmit Transaction Retry a failed or stuck transaction after fixing any errors.

Reassign Approval Task Change the assigned approver if the current one is unavailable.

Delegate Task Assign approval responsibility to another user.

Escalate Approval Move approval to a higher authority if an approver does not act.

Force Approve Manually approve a transaction if it is stuck due to workflow issues.

Reject Transaction Deny a request and notify the requester.

Suspend Transaction Temporarily put a transaction on hold without canceling it.

Resume Transaction Restart a suspended transaction.

Action Description

Auto-Populate Errors View and correct errors that caused transaction failures.

Track Approval Path View the approval hierarchy and pending approvers.

Check System Logs Diagnose transaction failures and workflow issues.

How to Access & Manage Transactions in Transaction Console

1️.Go to Tools > Transaction Console in Oracle Fusion HCM.

2️. Search for the transaction using Transaction ID, Status, or Date.
3️. Click on the transaction to view details.
4️. Select the appropriate action (e.g., Resubmit, Reassign, Withdraw).
5️. If required, check the approval workflow and update as needed.

Common Use Cases

 A manager is on leave, and their approval task is stuck → Reassign or Delegate the approval.
 A transaction failed due to missing data → Edit the data and Resubmit the transaction.
 A request needs urgent approval but is pending → Escalate or Force Approve.
 An employee submitted a request by mistake → Withdraw the transaction.

Approval Reminder Notifications & Expiration Settings in Oracle Fusion HCM

Yes, Oracle Fusion HCM allows sending reminder notifications for approvals and setting an expiration date
for approval notifications to ensure timely action.

1. Sending Reminder Notifications for Approvals

Oracle Fusion provides an option to send automatic reminder notifications to approvers who have not
acted on pending transactions.
These reminders are triggered at predefined intervals until the approver takes action or the approval
expires.
Reminders are sent via email, system notifications, or worklist alerts.
How to Enable Approval Reminders?

1️. Navigate to Setup and Maintenance.

2️. Search for Manage Task Configurations for Human Capital Management.
3️. In the BPM Worklist, locate the approval task (e.g., "Hire an Employee Approval").
4️. Open the Notification Settings tab.
5️. Set the Reminder Interval (e.g., Send reminder every 2 days).
6️. Save and deploy the changes.

Example: A reminder can be configured to be sent every 2 days if the approval is pending.

2. Setting Expiration Date for Approval Notifications

Approvals can be configured with an expiration period to prevent indefinite pending transactions.
If the approver does not act before the expiration, the system can escalate, auto-approve, or reject the
request.

How to Set Expiration for Approvals?

1️. Open BPM Worklist.

2️. Locate the Approval Task.
3️. Go to the Expiration and Escalation section.
4️. Define the Time Limit (e.g., Approval expires in 7 days).
5️. Choose an action for expired approvals:

Escalate to Next Approver

Auto-Reject

Auto-Approve
6️⃣ Save and apply the changes.

Auto-Claim Feature in Oracle Approvals

What is Auto-Claim in Oracle Approvals?

The Auto-Claim Feature In Oracle Fusion HCM Approvals Allows An Approval Request To Be Automatically
Assigned To The First Approver Who Takes Action On It. This Is Useful In Workflows Where Multiple Users
Have The Authority To Approve, But Only One Person Needs To Act.

Key Benefits of Auto-Claim

Prevents Duplicate Approvals – Ensures that only one approver processes the request, avoiding confusion.
Faster Processing – The first available approver can take action, speeding up approvals.
Reduces Workload for Approvers – Once an approver claims a task, it disappears from the other approvers'
queues.
Improves Efficiency in Parallel Approvals – Avoids multiple people approving the same transaction when it’s
not needed.

How Auto-Claim Works?

1️. A transaction (e.g., salary change, promotion) is sent for approval.

2️. The system assigns it to a group of approvers (e.g., multiple managers or HR team members).
3️.The first approver who opens and takes action on it automatically claims it.
4️. Once claimed, the transaction is removed from other approvers' worklists.
5️. The approver completes the process by approving, rejecting, or reassigning the request.

1) 🔹 When to Use Auto-Claim?

2) 🔹 Shared Approval Responsibility – When multiple users can approve, but only one is required.
🔹 Time-Sensitive Transactions – Ensures approvals happen quickly without waiting for a specific
person.
🔹 Workload Balancing – Distributes approvals among available users instead of assigning them
sequentially.

Delegation of Approvals for Document of Records (DOR)

**Requirement:** Employee submits a Document of Record (DOR) change requiring manager approval. If
the manager is on extended leave, the transaction remains pending.

**Solution:**
1. **Use BPM Worklist for Delegation:** Assign a temporary delegate approver.
2. **Set Vacation Rules:** Redirect approvals automatically in BPM Worklist.
3. **Configure Alternate Approvers in Approval Rules:** Enable auto-escalation if unapproved beyond a set
duration.

Reverse Termination vs. Rehire

| Feature | Reverse Termination | Rehire |

|---------|--------------------|--------|
| **Definition** | Cancels termination before the last working day. | Reappoints a previously terminated
employee. |
| **Use Case** | When termination was done in error. | When an ex-employee is rehired. |
| **Employment Status** | Employee status is restored without a gap. | Employee has a break in service. |
Rehiring an Employee When ‘Recommended for Rehire’ is Not Checked

What is ‘Recommended for Rehire’ in Oracle Fusion HCM?

The ‘Recommended for Rehire’ checkbox in Oracle Fusion HCM is an indicator used during employee
termination. It helps HR determine if an employee is eligible for rehire in the future.

Checked → The system allows rehire without any restrictions.

Not Checked → The system may restrict or warn HR when attempting to rehire.

System Behaviour When Attempting to Rehire Without ‘Recommended for Rehire’

1️. Rehire Attempt Through the "New Hire" Process

If the HR tries to hire the same employee as a new hire, Oracle prevents duplicate records by detecting the
existing Person Number.

HR will need to use the Rehire Employee action instead.

2️. Rehire Attempt Through the ‘Rehire Employee’ Action

If the ‘Recommended for Rehire’ checkbox was unchecked during termination, the system may:

Display a warning message notifying HR that the employee was not marked for rehire.

Allow rehire but require justification before proceeding.

Restrict rehire entirely, depending on how the organization has configured approval rules.

3️. Approval Workflow Impact

Some organizations configure approvals for rehires based on the ‘Recommended for Rehire’ status.

If unchecked, the system may route the request for additional approvals from HR or higher management
before allowing rehire.

4️. Impact on Benefits & Payroll

Depending on setup, previous payroll details, benefits, and employment history may not be automatically
restored.

HR may need to manually reassign benefits, roles, and compensation plans.

Workarounds & Solutions

If HR mistakenly left ‘Recommended for Rehire’ unchecked:

Manually update the employee’s termination record (if policy allows).

Use the ‘Reverse Termination’ action and reprocess the termination with the correct status.

Submit a request for exception approval to rehire the employee.

If the system blocks rehire entirely:

Check if your organization’s setup disallows rehire based on this flag.

Modify approval rules in BPM Worklist to allow HR to override the restriction.

Difference Between Local Transfer & Global Transfer in Oracle Fusion HCM

In Oracle Fusion HCM, both Local Transfer and Global Transfer are used to move employees within an
organization. However, they differ in scope, process, and impact.

1. Local Transfer (Internal Transfer)

A Local Transfer refers to the movement of an employee within the same legal entity (e.g., shifting to a
different department or location within the same country).

Key Characteristics

Employee remains in the same legal entity.

Person Number and Assignment Number remain unchanged.

Work relationship remains the same.

Payroll, benefits, and other records continue without major changes.

Typically requires less paperwork and system updates.

Common Use Cases

Department Change → Employee moves from Finance to IT within the same company.

Job Role Change → Promotion or lateral movement within the same legal entity.

Location Change → Moving to another office but within the same country/legal entity.

2. Global Transfer (International Transfer)

A Global Transfer occurs when an employee moves to a different legal entity, usually in another country.

Key Characteristics
Employee is transferred to a different legal entity (often across countries).

A new Work Relationship is created in the new legal entity.

A new Person Number or Assignment Number may be assigned.

Payroll, benefits, and statutory requirements may reset based on new country regulations.

System treats it as a new employment record, while still maintaining history.

Common Use Cases

International Assignment → Employee moves from Oracle India to Oracle USA.

Mergers & Acquisitions → Employee shifts from one subsidiary to another in a different country.

Company Restructuring → Employee joins a newly created legal entity under the same organization.

Key Differences Between Local & Global Transfer

Feature Local Transfer Global Transfer

Legal Entity Change No Yes

Work Relationship Remains the same New work relationship is created

Person Number Remains the same May change (new assignment)

May need new payroll, tax setup, benefits

Payroll & Benefits Continue as is
update

Approval
Lower Higher (requires compliance checks)
Complexity

Internal job, department, or location

Use Case International move, entity switch
change

Work Relationship in Oracle Fusion HCM

Definition of Work Relationship

In Oracle Fusion HCM, a Work Relationship represents the employment association between a person and
an organization. It defines the type of employment, start and end dates, legal entity, and payroll details.

A work relationship is created when:

A person is hired as an employee.

A person is engaged as a contingent worker (contractor/freelancer).

A person switches between employee and contingent worker roles.

Types of Work Relationships

Oracle Fusion HCM supports multiple types of work relationships:

1️. Employee – A permanent worker with an employment contract.

2️. Contingent Worker – A contractor or freelancer.
3️. Non-Worker – A person associated with the organization but not on payroll (e.g., volunteer, external
consultant).
4️. Pending Worker – A person hired but not yet onboarded.

Can a Person Have Multiple Work Relationships in the Same Legal Entity?

Yes, it is possible. A person can have multiple work relationships within the same legal entity if they take on
different roles.

Scenarios Where Multiple Work Relationships Exist

Scenario Example

An employee working full-time also serves as a part-time contractor

Employee + Contingent Worker
for another project.

An employee who is also an external trainer for a corporate training

Employee + Non-Worker
program.

A software engineer who is also a part-time consultant in another

Multiple Jobs in the Same Company
department.

Rehired Employee with a New Work A former employee rehired while maintaining their past
Relationship employment history.

System Behaviour with Multiple Work Relationships

The system tracks each work relationship separately with its own Assignment Number.

Payroll, benefits, and approvals are managed independently for each relationship.

The person’s record shows all active and past work relationships, ensuring historical accuracy.