Oracl e Payroll Cost ing Set up

Screenshot s

Prepared By:
Sanj ay Singh
(03-SEP-2007)

Contributors
Sanj ay Singh

Revision History
Version Date Originator Reason for change Software Approval
number Inspection
Draft 30/08/07 Sanjay Singh Initial Draft
Set Up 31/08/07 Sanjay Singh Added the Set up details related to
Costing
Process 03/09/07 Sanjay Singh Added the steps and the process of
executing the Costing process in
Oracle Payroll

Sanjay Singh – eBusiness Suite Payroll Specialist http://oracle.anilpassi.com

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

Sanjay Singh – eBusiness Suite Payroll Specialist 1

http://oracle.anilpassi.com
 1 COSTING DESCRIPTION
Recording the costs of an assignment for accounting or reporting purposes
Using Oracle Payroll, you can calculat e and t ransf er cost ing inf ormat ion t o your general ledger
and int o syst ems f or proj ect management or labor dist ribut ion.

1. 1 COST ALLOCATION FLEXFIELD

When implement ing and using Oracle HRMS, you make select ions f rom t he list s in t he Cost
Allocat ion f lexf ield segment s as f ollows:

o When def ining a payroll, you can select a code f or t he company or ledger
holding t he labor cost s f rom t he payroll.

o When linking an element represent ing an earnings t ype such as Regular Salary,
a deduct ion such as Union Dues, or an employer charge such as a benef it plan
cont ribut ion, you select a GL code t hat t he element 's result s should debit or
credit , and a code f or t he balancing GL account t o credit or debit .

Not e : As well as making ent ries t o t he Cost Allocat ion f lexf ield at t he element link
level, you also ent er on each link, essent ial inf ormat ion about t he t ype of cost ing t he
syst em should do f or t he link. Available t ypes include Cost ed, Fixed Cost ed, and
Dist ribut ed.

Cost Allocat ion inf ormat ion normally records t he det ails of employee cost ing associat ed wit h
payroll result s. If you have inst alled Oracle Payroll, you can accumulat e t he cost s associat ed
wit h your payroll result s and t ransf er t hese t o your General Ledger syst em. If you have not
inst alled Oracle Payroll you can use t he cost ing f lexf ield t o ent er your cost allocat ion
inf ormat ion.
Af t er you have specif ied your requirement s f or recording and report ing cost ing inf ormat ion,
f ollow t his implement at ion sequence:
Warning: You must def ine at least one segment f or t he Cost Allocat ion Key Flexf ield. If you do
not , you will experience problems using windows wit h t he f lexf ield window.

Sanjay Singh – eBusiness Suite Payroll Specialist 2

http://oracle.anilpassi.com
1. 2 COST ALLOCATION FLEXFIELD V ALUE SETS
To validat e t he values, which a user can ent er f or any segment , you must def ine a specif ic
Value Set .

The at t ribut es of t he Value Set cont rol t he t ype of values t hat can be ent ered, and how many
charact ers each segment can hold. The at t ribut es of t he Value Set will also cont rol how t he
values are t o be validat ed.

Value Set s can be shared by dif f erent segment s of t he same f lexf ield, or by segment s of any
ot her f lexf ield.

1. 3 COST ALLOCATION ENTRY LEVEL TABLE

The f ollowing t able describes t he cost allocat ion ent ry levels:

Ent ry Level Windows Purpose of Ent ry

Payroll Payroll Ident if ies company or ledger t o which all cost s
f rom t his payroll should go.

Link Element Link Ident if ies a GL account t o debit and a balancing

account t o credit , or f or deduct ions, an account
t o credit and a balancing account t o debit . Ot her
ent ries can ident if y any ot her account s int o which
run result s of t he element should go.

Organizat ion Organizat ion Ident if ies st ruct ures such as cost cent ers against
which t o charge t he payroll cost s of employees in
t he organizat ion.

Assignment Assignment Cost ing Ident if ies st ruct ures such as cost cent ers and
product lines against which t o regularly charge
payroll cost s of t his assignment .

Element Ent ry Element Ent ries Ident if ies st ruct ures such as cost cent ers and
Bat ch Lines product lines against which t o charge payroll cost s
of an employee assignment f or a period. Ent ries
of t en t aken f rom t imecards.

1. 4 COST ALLOCATION FLEXFIELD SEGMENTS

Oracle HRMS implement ers and users make select ions f rom t he list s in t he Cost Allocat ion
f lexf ield's segment s at dif f erent levels, t hat is, in several dif f erent Oracle HRMS windows.

Sanjay Singh – eBusiness Suite Payroll Specialist 3

http://oracle.anilpassi.com
However, in a part icular window, t hey usually need t o access only cert ain segment s of t he
f lexf ield.
Example:
When def ining a payroll you need only t he segment cont aining t he companies or set s of books
t o which a payroll's labor cost s should go. When def ining a link f or an earnings or deduct ion
element , you may need only t he segment cont aining t he list of t he cost ing and balancing GL
codes. You are likely need t he segment cont aining t he list of cost cent ers only when def ining
an organizat ion or employee assignment , or making an element ent ry.

You cont rol t he appearance of a Cost Allocat ion f lexf ield segment in a part icular window by
enabling qualif iers f or t he segment . When you enable a part icular qualif ier f or a segment , t his
causes t he segment t o appear and be available f or ent ry in a part icular window, as f ollows:

Cost Allocation enabling segments and qualifier's table

Qualifier Enables Segment's Appearance in

Payroll Payroll window
Element Link Element Link window
Organizat ion Organizat ion window
Assignment Assignment Cost ing window
Element Ent ry Element Ent ries window

1. 5 COST ALLOCATION FLEXFIELD QUALIFIERS

Def ine a st ruct ure f or your Cost Allocat ion Flexf ield, which cont ains t he segment s you want t o
use f or your Business Group. You will use t his st ruct ure t o ent er your payroll cost ing det ails in
Oracle HRMS.
You must ent er Yes in t he Allow Dynamic Insert s f ield. If you ent er No, you will not be able t o
ent er Cost ing det ails anywhere on t he syst em.

Not e: You do not need t o use a Value Set t o validat e a segment . If you do not specif y a
Value Set t hen a user can ent er any alphanumeric value up t o a limit of 150
charact ers.

The Cost Allocat ion Flexf ield is t he only key f lexf ield in Oracle HRMS t hat makes use of
Qualif iers. You use Segment Qualif iers t o cont rol t he level at which cost ing inf ormat ion can be

Sanjay Singh – eBusiness Suite Payroll Specialist 4

http://oracle.anilpassi.com
ent ered t o t he syst em. Each Qualif ier det ermines t he level at which cost ing inf ormat ion can be
ent ered. The f ollowing t able illust rat es t he six possible choices f or each segment :

Qualifier Effect on window

Payroll Ent er segment values in t he Payr ol l window.
Link Ent er segment values in t he El ement Link window.
Balancing Ent er balancing segment values in t he El ement Li nk window.
Organizat ion Ent er segment values in t he Cost i ng Inf or mat ion window f or t he Organizat ion.
Assignment Ent er segment values in t he Cost i ng window f or t he assignment .
Ent ry Ent er segment values in t he El ement Ent ri es window.

• Payroll: Limit s segment s displayed on t he Define Payroll screen

• Element : Limit s segment s displayed in the cost ing flexfield on t he Define Element
screen

• Balancing: Limit s segments displayed in t he balancing flexfield on the Define

Element screen

• Organization: Limit s segment s displayed on the Define Organization screen

• Assignment : Limit s segment s displayed on t he Employee Assignment screens

• Element Ent ry: Limit s segment s displayed on t he element ent ry screens

The f ollowing t able list s t he f ive levels, and t he correct order of processing priorit y.

Cost Allocation qualifiers level table

Qualifiers for t his

Level Typical Segment s Displayed at t his Level
Level
Payroll Payroll Company code, set of books
Element Link Element , Balancing GL account codes f or cost ing and balancing
Organizat ion Organizat ion Cost cent ers
Assignment Assignment Proj ect or product codes, or cost cent ers t hat do not map
ont o organizat ions
Element Element Ent ry Proj ect or product codes (f or employees who submit
Ent ry t imesheet s)

A code ent ered at a lower level can override a code ent ered at a higher level. This means t hat
if a segment is populat ed at element ent ry level, it overrides all ot her levels. You can enable
as many qualif iers as necessary f or a part icular segment .

Sanjay Singh – eBusiness Suite Payroll Specialist 5

http://oracle.anilpassi.com
1. 6 COST CODES AS PER SEGMENTS

Segment Name Code Description

Company 01 Bombay St ock Exchange Limit ed is f ixed

Segment 000 Cash, and is f ixed

Depart ment 043 Payroll, likewise based on t he Cost cent re t he

employee belongs his depart ment code should
change

Region 301 Mumbai, likewise based on t he Region it should

change

Account According t o Client Account s f or Payroll

Fut ure 1 000000 Fut ure Segment 1

Fut ure 2 000000 Fut ure Segment 2

Fut ure 3 000000 Fut ure Segment 3

Sanjay Singh – eBusiness Suite Payroll Specialist 6

http://oracle.anilpassi.com
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 Descript ion [ Cost ing] level

Segment code Balancing & Payroll Tracking Segment Code segment values
at Element Link [ Balancing] level and
Payroll Descript ion [ Cost ing] level

Depart ment Code Organizat ion & Balancing Tracking Depart ment Code at Element
Link [ Balancing] level and Organizat ion
[ Cost Cent er] Level

Region Code Element Ent ry & Balancing Tracking Region Code at Element Link
[ Balancing] level, and People Ent er and
Maint ain [Element Ent ry] level

Account Code Balancing & Element Link Tracking Account Code at Element Link
level and Element Link [ Balancing] level

Fut ure 1 Balancing & Payroll Tracking Fut ure 1 Code value at Element
Link [ Balancing] level and Payroll
Descript ion [ Suspense] level

Fut ure 2 Balancing & Payroll Tracking Fut ure 1 Code value at Element
Link [ Balancing] level and Payroll
Descript ion [ Suspense] level

Fut ure 3 Balancing & Payroll Tracking Fut ure 1 Code value at Element
Link [ Balancing] level and Payroll
Descript ion [ Suspense] level

Sanjay Singh – eBusiness Suite Payroll Specialist 7

http://oracle.anilpassi.com
Sanjay Singh – eBusiness Suite Payroll Specialist 8
http://oracle.anilpassi.com
Sanjay Singh – eBusiness Suite Payroll Specialist 9
http://oracle.anilpassi.com
Sanjay Singh – eBusiness Suite Payroll Specialist 10
http://oracle.anilpassi.com
Sanjay Singh – eBusiness Suite Payroll Specialist 11
http://oracle.anilpassi.com
1. 8 PAYROLL SEGMENT TRACKING AT VARIOUS LEVELS

Segment Name At what Level Description

Company Payroll Tracking Cost ing and Suspense segment code

values

Segment Payroll Tracking Cost ing and Suspense segment code

values

Depart ment Organizat ion GL Company Cost Cent er

Region Element Ent ry Tracking Region Code at Element Ent ry level

Account Element Link Element Link: Not Cost ed, Cost ed, Fixed
Cost ed, Dist ribut ed

Fut ure 1 Payroll Fut ure 1 Segment

Fut ure 2 Payroll Fut ure 2 Segment

Fut ure 3 Payroll Fut ure 3 Segment

Sanjay Singh – eBusiness Suite Payroll Specialist 12

http://oracle.anilpassi.com
 2 PAYROLL RUN PROCESS – WITH EXAMPLE

2. 1 QUICKPAY RUN

2. 1. 1 Nav: People Enter and Maintain

1. Select any one employee f or Payroll Run process. For Example: Employee Number:
56
2. Click on "Assignment " but t on
3. Click on "Ot hers" but t on and select "Quick Pay" opt ion f rom t he LOV.
4. Select Dat e Paid as 01-Aug-2007
5. Select Dat e Earned as "31-Aug-2007"
6. Select Run Type as "Regular Run"
7. Save t he record
8. Press "St art Run" but t on.
9. Then t he st at us will show as "Complet ed"
10. Af t er t hat Press "St art Prepayment s" but t on.
11. Again st at us will show as "Complet ed".
12. Then f inally press on "St art Archive" but t on.
13. Now t he st at us will show as” Complet ed"

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 "Elect ronic Fund Transf er Report (India)"
3. Ent er paramet ers as shown below:

Payroll : Client Payroll

Consolidat ion Set : Set up Business Group
St art Dat e : 01-AUG-2007
End Dat e : 31-AUG-2007
Payment Met hod : XXX_BOI_PAY_METHOD
Regist ered Company Name: Bombay St ock Exchange Lt d.
Payment Dat e : 31-AUG-2007

4. Submit t his report .

Sanjay Singh – eBusiness Suite Payroll Specialist 13

http://oracle.anilpassi.com
2. 3 PAYROLL COSTING PROGRAM RUN

2. 3. 1 Nav: View Request

1. Click on "Submit a New Request " but t on

2. Select Program Name as "Cost ing"
3. Ent er paramet ers values as shown below:

Payroll : Client Payroll

Consolidat ion Set : Set up Business Group
St art Dat e : 01-AUG-2007
End Dat e : 31-AUG-2007

4. Submit t his request .

2. 4 RUNNING THE COST BREAKDOWN REPORT

2. 4. 1 Nav: View Request

There are t wo versions of t he Cost Breakdown report :
• The Cost Breakdown Report f or Cost ing Run shows summarized cost ing t ot als f or a
specif ied cost ing process.
• The Cost Breakdown Report f or Dat e Range shows summarized cost ing t ot als f or a
part icular consolidat ion set or payroll over a specif ied int erval.
You run bot h versions in t he Submit Request s window.
To run t he Report f or a Cost ing Run:
1. In t he Name f ield, select t he report name. Then ent er t he Paramet ers f ield t o open t he
Paramet ers window.
2. Ent er t he cost ing process f or which you want t o generat e t he report . Addit ionally, if
your legislat ion allows cost ing by report ing ent it ies, you can specif y whet her t his
cost ing run should apply t o all report ing ent it ies, or t o a single report ing ent it y t hat
you select in t he report ing ent it y f ield.
3. Choose t he Submit but t on.

To run t he Report f or a Dat e Range:

1. In t he Name f ield, select t he report name. Then ent er t he Paramet ers f ield t o open t he
Paramet ers window.

Sanjay Singh – eBusiness Suite Payroll Specialist 14

http://oracle.anilpassi.com
 2. Ent er t he st art and end dat es f or which you want t o generat e t he report .
3. Select t he name of eit her t he payroll or t he consolidat ion set f or which you want t o see
inf ormat ion. Addit ionally, if your legislat ion allows cost ing by report ing ent it ies, you
can specif y whet her t his cost ing run should apply t o all report ing ent it ies, or t o a single
report ing ent it y t hat you select in t he report ing ent it y f ield.
4. Choose t he Submit but t on

2. 5 M APPING COST ALLOCATION TO THE ACCOUNTING FLEXFIELD

If your inst allat ion includes Oracle Payroll and Oracle General Ledger, you can run t he Transf er
t o GL process in each payroll period af t er you have run t he Cost ing process. The Transf er t o GL
process t ransf ers cost ing result s t o t he GL Account ing f lexf ield. Bef ore running t his process,
you must map segment s of t he Cost Allocat ion f lexf ield t o t he corresponding segment of t he
Account ing f lexf ield f or each payroll. To do t his, use t he GL Map window.

2. 5. 1 Nav: View GL Map Window

To map Cost Allocat ion t o Account ing f lexf ield segment s:
1. Set your ef f ect ive dat e t o t he dat e f rom which t his mapping should t ake ef f ect .
2. Query t he payroll f or which you are perf orming t he mapping. It s period t ype appears in
t he Period f ield.
3. Select t he set of books f or whose Account ing f lexf ield you are perf orming t he mapping.
Cost ing inf ormat ion f rom a payroll can go t o only one set of books.
4. Select t he name of a Cost Allocat ion f lexf ield segment in t he Payroll Cost ing Segment
f ield f or which a corresponding segment exist s in t he Account ing f lexf ield. Select t he
name of t he corresponding segment in t he GL Chart of Account s Segment f ield. Repeat
t his process f or all t he Cost Allocat ion f lexf ield segment s f or which t here is a
corresponding segment in t he Account ing f lexf ield.

5. Save your ent ries.

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. Ent er paramet er values f or:

St art Dat e: 01-AUG-2007

Sanjay Singh – eBusiness Suite Payroll Specialist 15

http://oracle.anilpassi.com
 End Dat e : 31-AUG-2007

4. Submit t his report .

2. 7 PAYROLL TRANSFER TO GL

2. 7. 1 Nav: View Request

1. Select "Submit a New Request "
2. Select program name as "Transf er t o GL"
3. Ent er paramet ers as shown below:

Payroll : Client Payroll

Consolidat ion Set : Set up Business Group
St art Dat e : 01-AUG-2006
End Dat e : 31-AUG-2006

4. Submit t his report .

Sanjay Singh – eBusiness Suite Payroll Specialist 16

http://oracle.anilpassi.com