Set Up Distributed Costing

Set up example of how you distribute costs for employer taxes, charges, and liabilities based upon earnings elements, such as wages, overtime, and shift pay are set up.

Create the Distribution Group

Create a distribution group that includes your earnings elements.

1. Use the Object Groups.

2. On the Object Groups page, create an element group.

3. Specify Distribution Group for the Usage Type parameter.

4. Specify which element classification or elements to include in the group.

   The costing option for the element's primary classification controls whether you can include the element in a distribution group. Typically, you include both standard and supplemental earnings in the distribution group.

Set Up Costing

You set up distributed costing at the element eligibility level. Use the Elements page to confirm you created element eligibility records for results elements generated by the element template when you created the element. Complete these steps to set up distributed costing:

1. Use Costing of Elements.

2. Search for and select the element eligibility record of the element, such as an employer liability record.

   Note: You must cost all the element eligibility records of the results element, even if you set up the same costing information for all the eligibility records. If there's no results element, cost the base element.

3. Update the record.

4. Set up the cost account information:

   1. In the Costing Type field, select Distributed.

   2. In the Distribution Group field, select the element group you created.

   3. Select the Transfer to General Ledger option if you plan to transfer and post costing results to your general ledger.

   4. In the Costed Input Values section, add the input value that has a special purpose definition of primary output value as the input value to cost.

   5. In the Cost Account section, enter values for the segments that you don't want the costing calculation to derive from distributed costing.

   6. In the Offset Account section, select the appropriate segments for the offset account. Typically, you select values that are different from the offset account used for earnings and deductions.