This tutorial deals with Fusion Payroll, and how it functions. In this part, we will discuss the topic of Costing in Payroll and the UIs associated with it.

Costing

(continued from Part 1)

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 company’s 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.

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. 1 - The Implementation Projects

Fig. 2 - The Manage Structures button is circled

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.

Managing Costing of Elements

To edit costing information for elements, follow the steps below:

1. Go to the Manage Costing of Elements task under Define Payroll Costing.

2. Search for an element by using the Search button.

3. From the search results, click on the name of the element eligibility to view the costing information for it. If necessary, you can edit the information by using the Edit button.

(continued in Part 3)

Krishnaa Lakshmanan

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