Beruflich Dokumente
Kultur Dokumente
Part 2
Costing is a mechanism by which a company determines how the company activities and the labour are
costed to the company at various stages of its operation. It can be very helpful for the management of the
organisation to get a wider picture about the costs undergone by the companys operations.
Costing plays a vital role in helping managers to form strategies and budgets to reduce the cost
borne by the company and to utilise available resources effectively.
Cost Information
In order to use the costing feature, proper cost information has to be provided at the proper places. For
example, a particular department has to have costing enabled in order to be eligible for the costing to be
done for that department. This can be done by using the respective tasks, as follows:
Person - Manage Costing for Persons
Payroll - Manage Costing of Payrolls
Elements - Manage Costing of Elements
Payment Sources - Manage Costing of Payment Sources
Departments - Manage Costing of Departments
Jobs - Manage Costing of Jobs
Positions - Manage Costing of Positions
Costing Processes
Costing has a number of processes available in Payroll to perform the required actions, as follows:
Calculate Payroll - Payroll run which creates the actual costing results.
Calculate Costing of Payments - Allocates costs for payment results, plus voided, cleared, and
external payments. This is run before creating the accounting entries.
Calculate Retroactive Costing - Recalculates the costs for retroactive changes to costing setups.
Costing of Balance Adjustment - Calculates the costing details for a balance adjustment.
Transfer to Subledger Accounting - Submits a process which transfers payroll costs to Subledger
Accounting.
The UIs for tasks related to costing
Cost Allocation Flexfield
From the Global Payroll perspective, the Cost Allocation Flexfield has to be defined in order to use the
costing feature. To do so, follow the steps below:
1. On the Navigator menu, go to Tools -> Setup and Maintenance.
2. Click on the Implementation Projects tab (circled in the screenshot below).
3. Click on the name of your Implementation Project from the list.
4. Expand the task list and go to the Manage Cost Allocation Key Flexfield task under Define Payroll
Costing.
5. Click on the Manage Structures button (circled in the screenshot below).
6. Click on the Search button to get the list of flexfields. Use the New icon to create a new flexfield,
or the Edit icon to edit an already existing flexfield.
7. The segments of the flexfield will show up. Select a segment and click on the Edit icon to view its
details.
8. You can add or remove labels associated with a segment.
9. Once you are done, click on the Save and Close button.
Fig. 9 - The Cost Centre segment details. Here, the department is the cost centre
Managing Cost Information
As discussed before, proper cost information has to be provided at the proper places for costing to work
effectively in Payroll Calculation. There are specific tasks to achieve this for payrolls, elements,
departments, persons, etc. The UIs related to these tasks are discussed below.
Managing Costing of Payrolls
To edit costing information for Payrolls, follow the steps below:
1. Go to the Manage Costing of Payrolls task under Define Payroll Costing.
2. Search for your payroll by using the Search button.
3. From the search results, click on the name of your payroll to view the costing information for your
payroll. If necessary, you can edit the information by using the Edit button (circled in the
screenshot below).
As discussed before, costing is employed by a company to determine how the company activities and the
labour are costed to the company at various stages of its operation. It can be very helpful for the
management of the organisation to get a wider picture about the costs undergone by the companys
operations.
Continuing from Part 2 of the tutorial, we shall discuss UIs related to the managing of cost
information at different levels in Payroll.
Managing Costing of Payment Sources
To edit costing information for payment sources, follow the steps below:
1. Go to the Manage Costing of Payment Sources task under Define Payroll Costing.
2. Search for a payment source by using the Search button.
3. From the search results, click on the name of a payment source to view the costing information
for it.
4. To create a new costing of a payment source, click on the New icon (circled in the screenshot
below).
5. Select the Effective Date and click on the Continue button.
6. Enter the account numbers for the costing of payment source and click on the Submit button.
Fig. 1 - The Manage Costing of Payment Sources task
Fig. 4 - Entering the details of the costing of payment source. The Submit button is circled
Managing Costing of Departments
To edit costing information for departments, follow the steps below:
1. Go to the Manage Costing of Departments task under Define Payroll Costing.
2. Search for a department by using the Search button.
3. From the search results, click on the name of a department to view the costing information for it. If
necessary, you can edit the information by using the Edit button (circled in the screenshot below).
Fig. 5 - The Manage Costing of Departments task