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Payroll Costing in Oracle Apps

An ERPWebTutor Presentation

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What is Payroll Costing

Jane works for Demo

Corporation’s IT
department and gets paid.

Demo Corporation IT
department has a budget
that USUALLY pays Jane’s
salary

Payroll Costing is used for posting the cost to

the ledger

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Work on a special
IT Support Activities report requested by
HR

Cost borne by IT Cost borne by HR

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Payroll Costing
Functional Setup
Components

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Cost Allocation Keyflexfield

Cost allocation Flexfield is used to accumulate the employee costing
information, if we use Oracle Payroll we can accumulate the cost associated
with the payroll and transfer to GL and if we are not using Oracle Payroll we
can able to interface the costing information to the third Party Payroll
system

Remember:
• If we are planning to integrate with the GL, then
the number segment in the cost allocation
flexfield should be same or more than the
accounting flexfield.
• We should atleast have one segment for the cost
allocation flexfield otherwise will run into error
when defining payroll or in other form which is
having this flexfield

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Cost Allocation Keyflexfield > Segments

A segment is a single sub–field within a flexfield. You define the appearance
and meaning of individual segments when customizing a flexfield. A
segment is represented in your database as a single table column.

Sample Costing string

001.101.012345.000000.999

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Cost Allocation Keyflexfield > Segments >

Flexfield Qualifiers
Using flexfield qualifier, you instruct Oracle which segment must be visible at
which costing level.

Example > Company segment

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Cost Allocation Keyflexfield > Segments >

Flexfield Qualifiers

Example > Cost Center segment

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Cost Allocation Keyflexfield > Segments >

Flexfield Qualifiers
Payroll Screen

Note Cost Center

segment is NOT
displayed

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Cost Allocation Keyflexfield > Segments >

Flexfield Qualifiers
Element Entry Screen

Note Company
segment is NOT
displayed

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Levels of Costing

Payroll Lowest Priority

Element Link
The value at the
Organization lower level overrides
the value at the
Assignment upper level

Element Entry Highest Priority

Let’s see an example

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Costing Types

 Costed
• Uses the costing hierarchy as previously
mentioned. All 5 levels are available for
costing
• Allows assignment level costing.
• Allows split costing at the assignment level.
The sum of the splits must equal 100
percent.

Example

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Costing Types
 Fixed Costed (Done at the Element Link
level)

• Fix costed works in the same way as costed

• Does NOT use the assignment or
organization level costing.
Payroll Lowest Priority

The value at the lower

Element Link level overrides the value
at the upper level
Element Entry
Highest Priority

Examples: Medicare EE, FIT, 401K Contributions etc.

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Costing Types
 Distributed
• Used when you want to distribute overhead
costs (such as employer contributions to a
pension plan) over other elements
• Requires creation of distribution set of
elements
• Assign the distribution set to an element at
the element link level

Examples: 401k Employer contributions

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GL Flexfield Mapping
This is a MANDATORY step!!!!

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Thank you….

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answers on Costing
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