ecome a Master at Distributing Payroll Accounting

Learning Objectives

After completing this topic, you'll be able to:

Transfer costing results for payroll

Create and review journal entries for financial transactions
Correct journal entries

Share the Wealth by Distributing Accounting

Icon representing Distributing Accounting

Distributing accounting will solve all of your problems when you need to transfer
the costing result for your payroll run costs and your payments. When you
distribute accounting, you'll transfer the cost results to Oracle Fusion Subledger
Accounting from the Payroll Checklist work area. Doing this enables you to create
journal entries, which you can use to adjust or add transactions to accounts, or to
update account balances. You'll create a rough draft of these entries to start
using the Scheduled Processes work area, where you'll be able to review them. If
everything checks out, you'll create your final journal entries, which you'll post
to the Oracle Fusion General Ledger.

When you distribute accounting, you'll:

Calculate Cost Distributions.

Distribute Accounting.
Transfer costing results to Subledger Accounting.
Create and review draft journal entries.
Create, transfer, and post journal entries.

The following image is an overview of the steps taken when you distribute
accounting.

The image shows the flow of tasks for calculating cost distribution and
distributing accounting.
Let Subledger Accounting Do Some Work For You

Payroll is integrated with Subledger Accounting, which is a useful accounting

application that does some heavy lifting for you by generating journal entries for
financial transactions. To use this feature, you'll submit the Transfer to
Subledger Accounting process from the Accounting Distribution or Payroll Checklist
work areas. Doing this will prepare transactions for accounting for costing results
and journal entries. For example, you would use this process to prepare
transactions for payroll run results, and journal entries for each costed run
result.

The Transfer to Subledger Accounting process also creates a transaction number for
each person's costing results. This number is what you'll use to search for
someone's journal entries on the Review Journal Entries page in the Accounting
Distribution work area.

For example, if you submit a QuickPay process for someone, the Transfer to
Subledger Accounting process will create journal entries for each costing result
generated by the payroll calculation and payment process. The process creates two
transaction numbers, including one for the payroll calculation costing results, and
one for the payment costing results.
Tweak Your Journal Entries to Get Everything Right
Because payroll also integrates with the General Ledger, you'll be able to submit
the Create Accounting process in draft mode from the Scheduled Processes work area.
Doing this will give you a chance to review the resulting journal entries before
you transfer and post them to the General Ledger. While you can actually make up
your own system for reviewing journal entries, you would typically review them
after you add new accounts, payrolls, or elements that would affect costing.

When it comes to how you'll review your entries, you can either:

Select the Review Journal Entries task in the task pane of the Accounting
Distribution work area.
The Review Journal Entries page displays a summary of the transactions. You
can drill down to display information about the transactions underlying the
accounting transactions and journal entry.
Display the output of the Create Accounting process in the Create Accounting
Execution report.

Icon represents the process to correct the costing results

If you happen to discover costing results that require correction, you can roll
back the Transfer to Subledger Accounting process from the flow's checklist. After
correcting the costing results, you can then submit the Transfer to Subledger
Accounting process from the Accounting Distribution or Payroll Checklist work
areas. To create and review the corrected journal entries, you'll submit the Create
Accounting process in draft mode.
Get Your Journal Entries to Their Final Destination

When you're ready to transfer and post your final journal entries to the General
Ledger, you'll submit the Create Accounting process in final mode from the
Scheduled Processes work area.

However, you should note that after you submit and complete the Create Accounting
process in final mode, you won't be able to roll back the posted journal entries.
If you do have a result that needs to be corrected, you'll have to:

Correct the result using one of the actions shown on the following table:

Costing Result

Corrective Action

Costed run result

Process a cost adjustment or retroactive costing

Costed payment result

Enter adjustments directly into the General Ledger

Submit the Transfer to Subledger Accounting process.
Submit the Create Accounting process in draft mode to review the entries, and
in final mode to transfer and post the entries to the General Ledger.

Topics:

Become a Master at Distributing Payroll Accounting

Learning Objectives
 Share the Wealth by Distributing Accounting
Let Subledger Accounting Do Some Work For You
Tweak Your Journal Entries to Get Everything Right
Get Your Journal Entries to Their Final Destination

Role: Administrator

Level: Intermediate

Cloud: HCM

Area: Payroll