Costing in Oracle HRMS
In Oracle Human Resources, you can:
- estimate current labor costs from the compensation definitions you have entered on the system
- project future labor costs by modelling organizational change and salary reviews
- allocate costs to cost centers and project codes at any level, from the organization to individual element entries for assignments
However, the accurate accumulation of labor costs can only be done following a payroll run. Using Oracle Payroll, you can run the supplied Costing process to accumulate actual payroll costs under the headings you set up in the Cost Allocation flexfield. You can run another supplied process to transfer the costs to accounts in Oracle General Ledger.
- allocate costs to account codes for transfer to the General Ledger
If you do not use Oracle Payroll or Oracle General Ledger, you need to consider how the salary information and cost codes you enter in Oracle Human Resources relate to your payroll and financial systems where real costs are recorded.
In a human resource system, there are typically three types of heading under which you want to collect labor costs:
- account codes, to transfer earnings and deductions to the appropriate General Ledger accounts
- cost centers, to show the costs of particular departments
You set up each of these types, and any others required by your enterprise, as segments of the Cost Allocation key flexfield.
- project (or product) codes, to transfer costs to a project management or labor distribution system
Setting Up the Cost Allocation Key Flexfield