At all installations of Oracle HR, you can allocate employee costs to cost centers, GL codes and labor distribution codes. You do this by setting up segments of the Cost Allocation key flexfield to determine the windows in which users can select cost codes.
If your installation does not include Oracle Payroll or Oracle General Ledger, you must consider how to relate information on labor costs entered in Oracle Human Resources to your payroll and financial systems.
If your installation includes Oracle Payroll, you use a post-payroll run process to accumulate payroll costs by cost center, GL account code, and the labor distribution codes in use at your enterprise. For installations that also include Oracle General Ledger you can map the segments of the Cost Allocation key flexfield to the corresponding segments of the General Ledger Accounting flexfield. Another post-payroll run process is available to facilitate the transfer of information on payroll transactions to Oracle General Ledger.
The Sample Payroll Results table below is based on the flexfield setup described in the previous topic. It displays payroll run results for four employees, using accounts and work structures identified using the Cost Allocation key flexfield. The Example Costing Process Results table shows how the Costing process allocates these payroll results:
to accounts and cost centers, for the general ledger
to accounts for cost centers and product lines within cost centers, for labor distribution purposes.
This table displays sample payroll results for four employees:
| Employee | Cost Center | Product Line | Salary | Wages | Overtime | Union Dues |
|---|---|---|---|---|---|---|
| Employee 1 | Production | H201 100% | 1,000 | 400 | 20 | |
| Employee 2 | Sales | H305 100% | 1,500 | |||
| Employee 3 | Production | H201 50% H202 50% | 2,000 | 600 | 30 | |
| Employee 4 | Sales | H305 20% | 1,000 | |||
| H307 40% | ||||||
| H310 40% |
This table shows the allocation of costs from the sample run results:
| Account Code | Production | Sales | H201 | H202 | H305 | H307 | H310 |
|---|---|---|---|---|---|---|---|
| Salaries | 2,500 | 1,700 | 400 | 400 | |||
| Wages | 3,000 | 2,000 | 1,000 | ||||
| Overtime | 1,000 | 700 | 300 | ||||
| Union Dues Liability | 50 | ||||||
| Clearing (see note below) |
Note: Clearing account contains balancing credits for earnings Salary, Wages and Over-time, and balancing debit for deduction Union Dues.