This chapter provides a checklist of setup steps in Labor Distribution.
Complete all required setup steps for the following applications before beginning the Labor Distribution setup steps.
Oracle Applications System Administration
Oracle General Ledger
Oracle Human Resource Management Systems
Oracle Grants Accounting
Note: Grants Accounting is optional.
Oracle Projects
Note: Oracle Projects is optional.
Oracle Workflow
Table 1 shows the Labor Distribution setup checklist.
Note: The sequence indicated for the setup checklist applies to the Labor Distribution setup process only. For each application installed, consult the guides for that application to determine the sequence of setup steps.
You must complete all required setup steps in this checklist.
| Step Number | Setup Step | Type | Oracle Applications |
|---|---|---|---|
| Oracle Applications System Administration | |||
| 1. | Set up System Administration | required | System Administration |
| Oracle General Ledger | |||
| 2. | Define Account Combinations | required | General Ledger |
| Oracle Human Resource Management Systems | |||
| 3. | Define Cost Allocation Flexfield | required | HRMS |
| 4. | Create Locations | required | HRMS |
| 5. | Create Organizations | required | HRMS |
| 6. | Define Jobs | required | HRMS |
| 7. | Define Payrolls | required | HRMS |
| 8. | Define Elements and Input Values | seeded/ user-defined | HRMS |
| 9. | Define Elements Links | required | HRMS |
| 10. | Define a Salary Basis | required | HRMS |
| Oracle Grants Accounting | |||
| 11. | Set Up Grants Accounting | optional | Grants Accounting |
| Oracle Projects | |||
| 12. | Set Up Projects | optional | Projects |
| Workflow | |||
| 13. | Set Up Workflow | required | Workflow |
| Labor Distribution, Labor Scheduling Setup | |||
| 14. | Set Up Organization Suspense Accounts | optional | Labor Distribution |
| 15. | Set Up Organization Default Labor Schedule | optional | Labor Distribution |
| 16. | Set Up Organization Default Accounts | optional | Labor Distribution |
| 17. | Set Up Elements Imported | required | Labor Distribution |
| 18. | Set Up Global Element Override | optional | Labor Distribution |
| 19. | Set Up Element Groups | optional | Labor Distribution |
| 20. | Set Up Payroll Sources | optional | Labor Distribution |
| 21. | Set Up Begin Date Auto-fill Parameters | optional | Labor Distribution |
| 22. | Set Up End Date Auto-fill Parameters | optional | Labor Distribution |
| 23. | Set Up Clearing Account | required | Labor Distribution |
| Labor Distribution, Salary Cap Setup | |||
| 24 | Set up Salary Cap Rates | optional | Labor Distribution |
| 25 | Set Up Project Overrides | optional | Labor Distribution |
| 26 | Set Up an Organization Excess Salary Account | optional | Labor Distribution |
| 27. | Set Up a Generic Excess Salary Account | required | Labor Distribution |
| Effort Reporting Setup | |||
| 29 | Set up descriptive flexfields to enter additional effort report information | Optional | HRMS |
| Labor Encumbrance Setup | |||
| 30. | Set Up Encumbrance Payroll and Assignment Selection | required if you use encumbrances | Labor Distribution |
| 31. | Set Up Default Encumbrance End Date | required if you use encumbrances | Labor Distribution |
| 32. | Set Up Encumbrance Element Selection | required if you use encumbrances | Labor Distribution |
| 33. | Set Up Creation Options for GL | required if you use encumbrances | Labor Distribution |
| 34. | Set Up Database Triggers and the Functional Area | required if you use encumbrances | HRMS |
| Expenditure Type and Natural Account Auto- Population Setup | |||
| 35. | Set Up Lookups Table | required if auto-population enabled | Labor Distribution |
| 36. | Define Expenditure Type Auto-Population Rules | required if auto-population enabled | Labor Distribution |
| 37. | Define Natural Account Auto-Population Rules | required if auto-population enabled | Labor Distribution |
| 38. | Set Up By-Pass Table | required if auto-population enabled | Labor Distribution |
| 39. | Set Up Autopop Segment | required if Natural Account auto-population enabled | Labor Distribution |
| 40 | Use Element Entries to Obtain Charging Instructions for Payroll Distribution | optional | Labor Distribution |
| 41 | Use Employee Work Schedules to Distribute and Encumber Labor Costs | optional | Labor Distribution |
| 42 | Import costed hours and encumber hours | optional | Labor Distribution |
To set up Labor Distribution, perform the following steps.
Set up System Administration.
To set up System Administration, see System Administration Setup and Oracle Applications System Administrator's Guide.
Accounting flexfield combinations must be defined to use Labor Distribution.
Warning: You cannot select accounting flexfield combinations for the labor schedule if the application fails to post journals for those value combinations. For example, if you do not set up the accounting flexfield combination and enable it, then you cannot close the accounting flexfield window when you set up labor schedule lines.
Warning: After you set up autopopulation rules in Oracle Labor Distribution, if you want to change the ordering number of the accounting key flexfield natural account segment, or want to delete the natural account segment in Oracle General Ledger, then you must do the following before making changes:
Delete all values in the Segment Setup window.
Delete all values from the By-pass Natural Accounts window.
Delete all values from the Natural Accounts window.
After you make the required changes, you can create the above values again.
See: Defining Accounts, Oracle General Ledger User Guide.
To use Labor Distribution, you must define the cost allocation flexfield and map it to Oracle General Ledger.
Warning: The cost allocation flexfield segments to General Ledger segment mapping must populate all fields of the General Ledger accounting flexfield structure. Otherwise, payroll costing does not post to General Ledger and you cannot import payrolls to Labor Distribution.
See: Key Flexfield Segments Window and Cost Allocation Flexfield, Oracle Applications Flexfields Guide and Cost Allocation Key Flexfield, Oracle HRMS Enterprise and Workforce Management Guide.
See: Running the Transfer to GL Process, Oracle HRMS Enterprise and Workforce Management Guide.
To use Labor Distribution, you must set up one or more locations in Oracle Human Resources.
See: Setting Up Locations, Oracle HRMS Enterprise and Workforce Management Guide.
Organizations must be defined in Human Resources to use Multiple Organizations in Labor Distribution.
For information on creating organizations, see Creating an Organization, Oracle HRMS Enterprise and Workforce Management Guide.
Jobs must be defined in Human Resources to use Labor Distribution. If using Grants Accounting, each employee assignment must have a job assigned to it.
To define jobs, see Defining a Job, Oracle HRMS Enterprise and Workforce Management Guide.
Payrolls must be defined in Human Resources to use Labor Distribution.
Warning: Labor Distribution imports and redistributes all employee assignments on a payroll for the elements selected. If users want to exclude certain employees from labor distribution, these employees must be assigned to a separate payroll that is not to be imported to Labor Distribution.
Within Oracle Human Resources and Oracle Payroll, labor costs can be assigned at the following hierarchical levels:
Payroll
Element link
Organization
Assignment
Element entry
For payroll imported to Labor Distribution, it is recommended that costing be done at the Payroll level. When distributing labor costs to General Ledger, Projects, or Grants Accounting charging instructions, Labor Distribution journals against the costing account setup for the payroll.
Warning: The costing account must be one of the clearing accounts selected in Labor Distribution; otherwise the payroll selected for import cannot be processed.
Note: The following settings must be defined as follows.
A payroll clearing costing account must be entered in the Costing field.
An appropriate General Ledger suspense account must be entered in the Suspense field.
For information on accounting transactions, see Labor Distribution Accounting Example.
To define payroll groups, see Defining a Payroll, Oracle HRMS Payroll Processing Management Guide.
Note: Users are required to perform the following setup procedure if the following circumstances apply:
the user intends to import Oracle Payroll into Labor Distribution
the payroll effective date is outside the payroll date range
You can specify the accounting date that Oracle Labor Distribution must use when transferring distribution lines into Oracle General Ledger. Oracle Labor Distribution supports the following parameters used by the Payroll Costing process and the Transfer to GL process:
Transfer to GL Process transfer on date earned (TGL_DATE_USED)
Accounting Date used for Reversals and Balance Adjustments (TGL_REVB_ACC_DATE)
You can use the above parameters to select the accounting date that Oracle Labor Distribution must use to transfer distribution lines into Oracle General Ledger, Oracle Projects and Oracle Grants Accounting. You can set up the above parameters in the Action Parameters window using the HRMS responsibility.
The following table describes the different parameter values and their impact on the accounting date:
| Action Parameter | Description | Value | Impact on Accounting Date |
|---|---|---|---|
| Transfer to GL Process transfer on date earned | Enables you to set the accounting date to the earned date or the paid date. | P (or no value) | The accounting date is the effective date of the payroll run. |
| E | The accounting date is the earned date of the payroll run. | ||
| Accounting Date used for Reversals and Balance Adjustments | Enables you to set the accounting date for payroll reversals and balance adjustments | P (or no value) | The accounting date is the effective date for the payroll reversal or balance adjustment. You can set the effective date in a closed period if the reversal or balance adjustment occurs in the past. |
| C | The accounting date is the effective date on which you used the costing process to cost the reversal and balance adjustment. The effective date is in the current period thus preventing payroll reversals and balance adjustments to post to closed periods in Oracle General Ledger. |
Examples For Using the TGL_DATE_USED Payroll Action Parameter
Assume that an organization has an hourly payroll that pays employees fifteen days after the pay period. For example, if the pay period is 16th December to 31st December according to your business requirements, you may want to pay employees only on 16th January. If you want to transfer these payroll transactions to Oracle General Ledger with the accounting date as the effective date on which you ran the payroll (16th January), then you must set the TGL_DATE_USED payroll action parameter to P.
For example, if the pay period is 16th December to 31st December, according to your business requirements, you may pay employees on 31st December, which is also the earned date. If you want to transfer these payroll transactions to Oracle General Ledger with the accounting date as the earned date (31st December), then you must set the TGL_DATE_USED payroll action parameter to E.
Examples For Using the TGL_REVB_ACC_DATE Payroll Action Parameter
Assume that you costed Reversals and Balance Adjustments that occur in the past (for example, 1st November to 15th November ) along with the payroll for the present month (16th December to 31st December). If you want to transfer the reversals and balance adjustments to Oracle General Ledger using the effective date for the reversals (15th November), then you must set the TGL_REVB_ACC_DATE payroll action parameter to P.
If you want to transfer these transactions using the effective date on which you ran the costing process to cost the reversal and balance adjustment, then you must set the TGL_REVB_ACC_DATE payroll action parameter to C.
Warning: Labor Distribution performs special calculations on the element Regular Salary to account for changes in salary or wages. If users create other elements for these types of pay, no special calculations are performed for those elements.
For information on defining elements and inputs, see Defining an Element , Oracle HRMS Compensation and Benefits Management Guide and Defining an Element's Input Values, Oracle HRMS Compensation and Benefits Management Guide.
Warning: Labor Distribution imports and redistributes all pay amounts for employees on the selected payrolls for the elements selected. If users do not want the pay amount distributed, a separate element that is not selected for import to Labor Distribution can be used.
Warning: For elements to be imported to Labor Distribution, if costing is set up at this level, the costing account must be identical to the clearing account selected in Labor Distribution; otherwise, the payroll selected for import cannot be processed.
For information on defining element links, see Defining Element Links, Oracle HRMS Compensation and Benefits Management Guide.
For information on accounting transactions, see Labor Distribution Accounting Example.
A salary basis must be defined in Labor Distribution to use Labor Distribution.
To define salary bases, see Defining a Salary Basis, Oracle HRMS Compensation and Benefits Management Guide.
Set up Grants Accounting. This step is optional.
To set up Grants Accounting, see Oracle Grants Accounting Setup Overview, Oracle Grants Accounting User's Guide.
Set up Projects. This step is optional.
To set up Projects, see Planning Your Implementation in Oracle Projects Implementation Guide.
Set up Workflow to enable the effort reporting and distribution adjustments workflow processes.
To set up Workflow, see Overview of Setting Up, Oracle Workflow Administrator's Guide.
Define Grants Accounting and Projects charging instructions and General Ledger accounting flexfields to set up Organization Suspense Accounts.
To set up Organization Suspense Accounts, see Labor Scheduling Setup.
Define Grants Accounting and Projects charging instructions and General Ledger accounting flexfields and percentages to set up Organization Default Labor Schedule.
To set up Organization Default Labor Schedule, see Labor Scheduling Setup.
Define Grants Accounting charging instructions and General Ledger accounting flexfields to set up Organization Default Accounts.
To set up Organization Default Accounts, see Labor Scheduling Setup.
Select payroll elements that you want to import during the payroll import process.
See: Labor Scheduling Setup.
Define a set of charging instructions for a particular element that overrides all of the employee, organization, and assignment schedule hierarchy selections.
See: Labor Scheduling Setup.
Define element groups at the site level.
See: Labor Scheduling Setup.
Define source codes for the payroll source.
See: Labor Scheduling Setup.
Select an auto-fill option for the begin date field.
See: Labor Scheduling Setup.
Select an auto-fill option for the end date field.
See: Labor Scheduling Setup.
Set up a clearing account to maintain balancing transactions.
See: Labor Scheduling Setup.
Set up the annual salary cap rates of the sponsor to enable the Create Distribution Lines process to compute the salary cap.
See: Setting Up Salary Cap Rates
Set up project overrides to enable the Create Distribution Lines process to override the annual salary cap rate, and use the salary cap rate that you defined for the project.
See: Setting Up Project Overrides
Set up organization excess salary accounts to enable the Create Distribution Lines process to transfer funds that exceed the salary cap.
See: Setting Up an Organization Excess Salary Account
Set up a generic excess salary account. The application transfers excess salaries to this account if the organization excess salary account does not exist or is not valid.
See: Setting Up a Generic Excess Salary Account
You must set up the Effort Report Information descriptive flexfield to enter additional information in the Headers section. You must also set up the Effort Approval Information descriptive flexfield to enter additional information in the Details section.
Set up encumbrance payroll and assignment selection to select specific payroll names for encumbrance.
See: Labor Encumbrance Setup.
Set up the default encumbrance end date.
See: Labor Encumbrance Setup.
Select elements to include in encumbrances.
See: Labor Encumbrance Setup.
Select the effective date to post encumbrance transactions to Oracle General Ledger.
See: Labor Encumbrance Setup.
To use encumbrances, you must select the Generated and Enabled check boxes of the following dynamic triggers in the Dynamic Trigger Generation window:
PSP_ASG_CHANGES_ARD
PSP_ASG_CHANGES_ARU
See: Defining Dynamic Triggers, Oracle HRMS Payroll Processing Management Guide
In addition, you must set the legislation and the business group of the PSP_ASG_CHANGES_ARD and PSP_ASG_CHANGES_ARU triggers for the PSP Update Encumbrance functional area in the Functional Area Maintenance window.
See: Grouping Dynamic Triggers into Legislative Functional Areas, Oracle HRMS Payroll Processing Management Guide
Seed all parameters and their associated information into a lookup table.
See: Expenditure Type and Natural Account Auto-Population Setup.
Define auto-population rules for expenditure types.
See: Expenditure Type and Natural Account Auto-Population Setup.
Define auto-population rules for natural accounts.
See: Expenditure Type and Natural Account Auto-Population Setup.
Set up the By-Pass table to define expenditure types to be passed over by auto-population.
See: Expenditure Type and Natural Account Auto-Population Setup.
Set up Autopop Segment to use auto-population.
See: Expenditure Type and Natural Account Auto-Population Setup.
If the employee assignment contains charging instructions along with the numbers of hours that the employee worked, you can use the Mapping of Charging Instruction for Labor Schedule Override configuration option to use the charging instructions in the element entries and override the labor schedule.
For more information, see Set Up Configuration Options.
You can use the Enable Work Schedule for Payroll Distribution and Encumbrance configuration option to set up Oracle Labor Distribution to process distribution lines based on work schedules of employees in Oracle HRMS. For example, an employee may work Saturday through Wednesday, and another may work Monday through Friday. In such cases, you can have Oracle Labor Distribution distribute and encumber labor costs based on those work schedules.
For more information, see Set Up Configuration Options.
You can use the Import Costed Hours and Encumber Hours configuration options to distribute and encumber the hours an employee worked during a payroll time period. This feature provides you information to determine the Full-Time Equivalent (FTE) of an employee.
For more information, see Set Up Configuration Options.