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Internal Organizations and Cost Centers

Depending on the structure of your enterprise and your decisions about which organizations to represent in Oracle HRMS, there may not be a one-to-one correspondence between your cost centers and the organizations you enter.

When defining an internal organization, you can identify one cost center against which the payroll costs of the employees assigned to the organization should be collected. You simply select the cost center from a list in a segment of the Cost Allocation key flexfield.

For example, suppose you are defining in Oracle HRMS the organization Product Assembly, whose employee payroll costs go to the cost center Production. When entering the organization Product Assembly, you select Production from the list of cost centers in the Cost Allocation flexfield:

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Note: If employees' costs are charged to cost centers other than those of their organizations, or if they work in an organization only part time, you can enter other cost centers, and the percentage of time to be charged to each, on their employee assignments. Costing information entered for employee assignments overrides that entered for organizations.

See Also

Setting Up the Cost Allocation Key Flexfield

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