Objective:
This training article is intended to provide an overview of Legislative Data Group (LDG), why it is a prerequisite setup while configuring Procurement module. We will also see LDG implementation in details.
Legislative Data Group (LDG):
Legislative data group (LDG) is required if we want to create Employees. In procurement we need Employees because Buyer defined in this module has to be an Employee. We cannot directly create user and use it in the procurement module unlike other modules like financials, Cash Management, etc where we can define user and can use that user in various functionality. In case of procurement we have to create Employees and Buyers. For that LDG is a mandatory setup. LDG is normally used in HR setup. It is grouping the data for payroll purpose. For each country we must have at least one LDG. Then only we can hire the employees for the country and would be able to process the payroll.
Implementing Legislative Data Group (LDG):
Before configuring LDG we need to setup the Legal Entity and Legal Entity Registration. To create Legal Entity Navigate>Procurement>Define common applications configuration for Procurement> Define Enterprise structure for procurement > Define Legal Entities for Procurement> Manage Legal Entity
Click on Task
Select Create New and Click on Apply and Go to Task
Click on Create Icon
Input the Legal Entity Name and Registration Information. Enable the check box for payroll statutory unit and Legal employer, reason already discussed. Click on Save and Close.
The next step is to Create the Legal Entity Registration. For which we need to select the scope as 16PO_AM_LE which we just created.
Click on Select
Choose on Select and Add and Click on Apply and Go to Task
Select the legal entity created and Click on Save and Close
We will see that the system automatically creates LE Registration details. In case we want to add another registration click New Icon and in case we need some changes in the default we can use edit icon. Click on Done button.
Let us now create Legislative data group. Navigate>Define Legal Entities for Procurement> Manage Legislative data Groups.
Click on Task
Click on Create Icon
Input the LDG name, Country, and Currency and click on Submit button.
Now it's important to associate LDG created with Legal Entity HCM information. For which Navigate>Define Legal Entities for Procurement> Manage Legal Entity HCM Information
Click on Task
Click on Correct under the 'Edit' tab. It's to be noted that Correct will update the records and Update will end date previous record and create a new record. So in this case we need to select the option Correct.
Under Payroll Statutory Unit tab associate the LDG created and Click on Submit.
Click on Done.
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