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This article discusses how Accounting Segments are built in Oracle Payroll.
For this article, assume that you do not have Labor Distributions implemented. Also assume that you do not have
OTL [Oracle Time and Labour].
I will explain the significance of those two modules in future articles. But for the purpose of simplicity, lets make that
assumption inn this article.
You must also read Metalink Note 69475.1
If cost centre can be derived from person's HRMS assignment, then why the need of this article on payroll
costing?
For the following reasons:-
1. Cost Centre is not the only accounting segment. For example, in this article, I assume we have Company
Segment, Cost Centre Segment, Project Segment and Expenditure Type Segment.
Payroll Costing must be able to work out values for each of these segments for each Payroll run result.
2. IT department may not always be the only department that bears my cost. For example, if I am asked to do some
enhancements or customizations to Oracle iProcurement, then Purchasing department may agree to cover my costs
for say 2 weeks. Please note my assignment will remain attached to IT Organization/Department.
Note:- With this example, its obvious that default Cost Centre from Organization Level must be overridden.
What are the various levels where you can Set up Payroll Costing Accounts? Which levels take the highest
precedence?
Element Entry => Highest
Assignment => Second Highest
Organization => Third Highest
Element Link => Fourth Highest
Payroll => Fifth Highest
It is obvious that if you attach a IT Cost Centre to persons assignment, that will override the Cost Centre setup at
payroll level.
This is confusing, why will someone ever default a cost centre from payroll level?
This is why Cost Allocation Flexfield in Oracle Payroll has qualifiers.
Note :- Payroll can be a monthly payroll, or weekly payroll etc. Frequency of running payroll has nothing to do with
cost centre.