Payroll Costing Setup

Oracle Payroll Costing Setup

Screenshots



Table Of Contents

1 COSTING DESCRIPTION 2

1.1 COST ALLOCATION FLEXFIELD 2

1.2 COST ALLOCATION FLEXFIELD VALUE SETS 3

1.3 COST ALLOCATION ENTRY LEVEL TABLE 3

1.4 COST ALLOCATION FLEXFIELD SEGMENTS 3

1.5 COST ALLOCATION FLEXFIELD QUALIFIERS 4

1.6 COST CODES AS PER SEGMENTS 7

1.7 ELEMENT LINK AT FLEXFIELD QUALIFIERS 8

1.8 PAYROLL SEGMENT TRACKING AT VARIOUS LEVELS 13

2 PAYROLL RUN PROCESS – WITH EXAMPLE 14

2.1 QUICKPAY RUN 14

2.1.1 Nav: People → Enter and Maintain 14

2.2 PAYROLL EFT RUN [ELECTRONIC FUND TRANSFER] 14

2.2.1 Nav: View → Request 14

2.3 PAYROLL COSTING PROGRAM RUN 15

2.3.1 Nav: View → Request 15

2.4 RUNNING THE COST BREAKDOWN REPORT 15

2.4.1 Nav: View → Request 15

2.5 MAPPING CAKF TO ACCOUNTING FLEXFIELD IN GL 16

2.5.1 Nav: View → Request 16

2.6 PAYROLL PAYSLIP PROGRAM RUN 16

2.6.1 Nav: View → Request 16

2.7 PAYROLL TRANSFER TO GL 17

2.7.1 Nav: View → Request 17

1. COSTING DESCRIPTION

Recording the costs of an assignment for accounting or reporting purposes

Using Oracle Payroll, you can calculate and transfer costing information to your general ledger and into systems for project management or labor distribution.

1.1 COST ALLOCATION FLEXFIELD

When implementing and using Oracle HRMS, you make selections from the lists in the Cost Allocation flexfield segments as follows:

15. When defining a payroll, you can select a code for the company or ledger holding the labor costs from the payroll.

15. When linking an element representing an earnings type such as Regular Salary, a deduction such as Union Dues, or an employer charge such as a benefit plan contribution, you select a GL code that the element's results should debit or credit, and a code for the balancing GL account to credit or debit.

Note: As well as making entries to the Cost Allocation flexfield at the element link level, you also enter on each link, essential information about the type of costing the system should do for the link. Available types include Costed, Fixed Costed, and Distributed.

Cost Allocation information normally records the details of employee costing associated with payroll results. If you have installed Oracle Payroll, you can accumulate the costs associated with your payroll results and transfer these to your General Ledger system. If you have not installed Oracle Payroll you can use the costing flexfield to enter your cost allocation information.

After you have specified your requirements for recording and reporting costing information, follow this plementation sequence:

Warning: You must define at least one segment for the Cost Allocation Key Flexfield. If you do not, you will experience problems using windows with the flexfield window.



1.2 COST ALLOCATION FLEXFIELD VALUE SETS

To validate the values, which a user can enter for any segment, you must define a specific Value Set.

The attributes of the Value Set control the type of values that can be entered, and how many characters each segment can hold. The attributes of the Value Set will also control how the values are to be validated.

Value Sets can be shared by different segments of the same flexfield, or by segments of any other flexfield.

1.3 COST ALLOCATION ENTRY LEVEL TABLE

The following table describes the cost allocation entry levels:

Entry Level	Windows		Purpose of Entry
Payroll	Payroll		Identifies company or ledger to which all costs
			from this payroll should go.
Link	Element Link		Identifies a GL account to debit and a balancing
			account to credit, or for deductions, an account
			to credit and a balancing account to debit. Other
			entries can identify any other accounts into which
			run results of the element should go.
Organization	Organization		Identifies structures such as cost centers against
			which to charge the payroll costs of employees in
			the organization.
Assignment	Assignment Costing		Identifies  structures  such  as  cost  centers  and
			product lines against which to regularly charge
			payroll costs of this assignment.
Element Entry	Element	Entries	Identifies  structures  such  as  cost  centers  and
	Batch Lines		product lines against which to charge payroll costs
			of an employee assignment for a period. Entries
			often taken from timecards.

1.4 COST ALLOCATION FLEXFIELD SEGMENTS

Oracle HRMS implementers and users make selections from the lists in the Cost Allocation flexfield's segments at different levels, that is, in several different Oracle HRMS windows.

However, in a particular window, they usually need to access only certain segments of the flexfield.

Example:

When defining a payroll you need only the segment containing the companies or sets of books to which a payroll's labor costs should go. When defining a link for an earnings or deduction element, you may need only the segment containing the list of the costing and balancing GL codes. You are likely need the segment containing the list of cost centers only when defining an organization or employee assignment, or making an element entry.

You control the appearance of a Cost Allocation flexfield segment in a particular window by enabling qualifiers for the segment. When you enable a particular qualifier for a segment, this causes the segment to appear and be available for entry in a particular window, as follows:

Cost Allocation enabling segments and qualifier's table

	Qualifier		Enables Segment's Appearance in
	Payroll		Payroll window
	Element Link		Element Link window
	Organization		Organization window
	Assignment		Assignment Costing window
	Element Entry		Element Entries window

1.5 COST ALLOCATION FLEXFIELD QUALIFIERS

Define a structure for your Cost Allocation Flexfield, which contains the segments you want to use for your Business Group. You will use this structure to enter your payroll costing details in Oracle HRMS.

You must enter Yes in the Allow Dynamic Inserts field. If you enter No, you will not be able to enter Costing details anywhere on the system.

Note: You do not need to use a Value Set to validate a segment. If you do not specify a Value Set then a user can enter any alphanumeric value up to a limit of 150 characters.

The Cost Allocation Flexfield is the only key flexfield in Oracle HRMS that makes use of Qualifiers. You use Segment Qualifiers to control the level at which costing information can be

entered to the system. Each Qualifier determines the level at which costing information can be entered. The following table illustrates the six possible choices for each segment:

	Qualifier		Effect on window
	Payroll		Enter segment values in the Payroll window.
	Link		Enter segment values in the Element Link window.
	Balancing		Enter balancing segment values in the Element Link window.
	Organization		Enter segment values in the Costing Information window for the Organization.
	Assignment		Enter segment values in the Costing window for the assignment.
	Entry		Enter segment values in the Element Entries window.

• Payroll: Limits segments displayed on the Define Payroll screen

• Element: Limits segments displayed in the costing flexfield on the Define Element screen

• Balancing: Limits segments displayed in the balancing flexfield on the Define Element screen

• Organization: Limits segments displayed on the Define Organization screen

• Assignment: Limits segments displayed on the Employee Assignment screens

• Element Entry: Limits segments displayed on the element entry screens

The following table lists the five levels, and the correct order of processing priority.

Cost Allocation qualifiers level table

	Level		Qualifiers for this		Typical Segments Displayed at this Level
			Level
	Payroll		Payroll		Company code, set of books
	Element Link		Element, Balancing		GL account codes for costing and balancing
	Organization		Organization		Cost centers
	Assignment		Assignment		Project or product codes, or cost centers that do not map
					onto organizations
	Element		Element Entry		Project or product codes (for employees who submit
	Entry				timesheets)

A code entered at a lower level can override a code entered at a higher level. This means that if a segment is populated at element entry level, it overrides all other levels. You can enable as many qualifiers as necessary for a particular segment.

1.6 COST CODES AS PER SEGMENTS

Segment Name	Code	Description
Company	01	Bombay Stock Exchange Limited is fixed
Segment	000	Cash, and is fixed
Department	043	Payroll, likewise based on the Cost centre the
		employee  belongs  his  department  code  should
		change
Region	301	Mumbai, likewise based on the Region it should
		change
Account	According to Client	Accounts for Payroll
Future 1	000000	Future Segment 1
Future 2	000000	Future Segment 2
Future 3	000000	Future Segment 3

1.7 ELEMENT LINK AT FLEXFIELD QUALIFIERS

Segment Name	Flexfield	Qualifier	Description
	Link
Company Code	Balancing & Payroll		Tracking Company Code segment values
			at  Element  Link  [Balancing]  level  and
			Payroll Description [Costing] level
Segment code	Balancing & Payroll		Tracking Segment Code segment values
			at  Element  Link  [Balancing]  level  and
			Payroll Description [Costing] level
Department Code	Organization & Balancing		Tracking  Department  Code  at  Element
			Link [Balancing] level and Organization
			[Cost Center] Level
Region Code	Element Entry & Balancing		Tracking  Region  Code  at Element  Link
			[Balancing] level, and People Enter and
			Maintain [Element Entry] level
Account Code	Balancing & Element Link		Tracking Account Code at Element Link
			level and Element Link [Balancing] level
Future 1	Balancing & Payroll		Tracking Future 1 Code value at Element
			Link   [Balancing]   level   and   Payroll
			Description [Suspense] level
Future 2	Balancing & Payroll		Tracking Future 1 Code value at Element
			Link   [Balancing]   level   and   Payroll
			Description [Suspense] level
Future 3	Balancing & Payroll		Tracking Future 1 Code value at Element
			Link   [Balancing]   level   and   Payroll
			Description [Suspense] level







1.8 PAYROLL SEGMENT TRACKING AT VARIOUS LEVELS

Segment Name	At what Level	Description
Company	Payroll	Tracking Costing and Suspense segment code
		values
Segment	Payroll	Tracking Costing and Suspense segment code
		values
Department	Organization	GL Company Cost Center
Region	Element Entry	Tracking Region Code at Element Entry level
Account	Element Link	Element  Link: Not  Costed,  Costed,  Fixed
		Costed, Distributed
Future 1	Payroll	Future 1 Segment
Future 2	Payroll	Future 2 Segment
Future 3	Payroll	Future 3 Segment



2. PAYROLL RUN PROCESS – WITH EXAMPLE

2.1 QUICKPAY RUN

2.1.1 Nav: People → Enter and Maintain

1. Select any one employee for Payroll Run process. For Example: Employee Number: 56

2. Click on "Assignment" button

3. Click on "Others" button and select "Quick Pay" option from the LOV.

4. Select Date Paid as 01-Aug-2007

5. Select Date Earned as "31-Aug-2007"

6. Select Run Type as "Regular Run"

7. Save the record

8. Press "Start Run" button.

9. Then the status will show as "Completed"

10. After that Press "Start Prepayments" button.

11. Again status will show as "Completed".

12. Then finally press on "Start Archive" button.

13. Now the status will show as” Completed"

2.2 PAYROLL EFT RUN [ELECTRONIC FUND TRANSFER]

2.2.1 Nav: View → Request

1. Select "Submit a New Request"

2. Select program name as "Electronic Fund Transfer Report (India)"

3. Enter parameters as shown below:

➢	Payroll	: Client Payroll
➢	Consolidation Set	: Setup Business Group
➢	Start Date	: 01-AUG-2007
➢	End Date	: 31-AUG-2007
➢	Payment Method	: XXX_BOI_PAY_METHOD

• Registered Company Name: Bombay Stock Exchange Ltd.

➢ Payment Date	: 31-AUG-2007
4. Submit this report.

2.3 PAYROLL COSTING PROGRAM RUN

2.3.1 Nav: View → Request

1. Click on "Submit a New Request" button

2. Select Program Name as "Costing"

3. Enter parameters values as shown below:

➢ Payroll : Client Payroll

• Consolidation Set: Setup Business Group

➢ Start Date : 01-AUG-2007

➢ End Date : 31-AUG-2007

4. Submit this request.

2.4 RUNNING THE COST BREAKDOWN REPORT

2.4.1 Nav: View → Request

There are two versions of the Cost Breakdown report:

• The Cost Breakdown Report for Costing Run shows summarized costing totals for a specified costing process.

• The Cost Breakdown Report for Date Range shows summarized costing totals for a particular consolidation set or payroll over a specified interval.

1. In the Name field, select the report name. Then enter the Parameters field to open the Parameters window.
2. Enter the costing process for which you want to generate the report. Additionally, if your legislation allows costing by reporting entities, you can specify whether this costing run should apply to all reporting entities, or to a single reporting entity that you select in the reporting entity field.

3. Choose the Submit button.

To run the Report for a Date Range:

1. In the Name field, select the report name. Then enter the Parameters field to open the Parameters window.



2. Enter the start and end dates for which you want to generate the report.

3. Select the name of either the payroll or the consolidation set for which you want to see information. Additionally, if your legislation allows costing by reporting entities, you can specify whether this costing run should apply to all reporting entities, or to a single reporting entity that you select in the reporting entity field.

4. Choose the Submit button

2.5 MAPPING COST ALLOCATION TO THE ACCOUNTING FLEXFIELD

If your installation includes Oracle Payroll and Oracle General Ledger, you can run the Transfer to GL process in each payroll period after you have run the Costing process. The Transfer to GL process transfers costing results to the GL Accounting flexfield. Before running this process, you must map segments of the Cost Allocation flexfield to the corresponding segment of the Accounting flexfield for each payroll. To do this, use the GL Map window.

2.5.1 Nav: View → GL Map Window

To map Cost Allocation to Accounting flexfield segments:

1. Set your effective date to the date from which this mapping should take effect.

2. Query the payroll for which you are performing the mapping. Its period type appears in the Period field.

3. Select the set of books for whose Accounting flexfield you are performing the mapping. Costing information from a payroll can go to only one set of books.
4. Select the name of a Cost Allocation flexfield segment in the Payroll Costing Segment field for which a corresponding segment exists in the Accounting flexfield. Select the name of the corresponding segment in the GL Chart of Accounts Segment field. Repeat this process for all the Cost Allocation flexfield segments for which there is a corresponding segment in the Accounting flexfield.

5. Save your entries.

2.6 PAYROLL PAYSLIP PROGRAM RUN

2.6.1 Nav: View → Request

1. Select "Submit a New Request"

2. Select program name as “Pay Advice (India)”

3. Enter parameter values for:

• Start Date: 01-AUG-2007



• End Date : 31-AUG-2007

4. Submit this report.

2.7 PAYROLL TRANSFER TO GL

2.7.1 Nav: View → Request

1. Select "Submit a New Request"

2. Select program name as "Transfer to GL"

3. Enter parameters as shown below:

➢ Payroll : Client Payroll

• Consolidation Set: Setup Business Group

➢

➢

Start Date : 01-AUG-2006

End Date : 31-AUG-2006

4. Submit this report.