Calculate Distributed Costing Example
This example shows you how the cost for an element is distributed based upon earnings elements in a distribution group.
Scenario
You distribute total cost of income tax from 30,000 USD gross pay over the earnings elements in a distribution group.
Distribute Tax Over Earnings
Create a distribution group that includes all your earnings elements and add an eligibility record with distributed costing to the income tax element.
Once you run the payroll calculation process, the costing calculation:
-
Totals the results of all elements within the distribution group
-
Calculates the percentage that each costed run result represents of the total for the group
-
Distributes the cost of the income tax proportionally
Note: The process uses the ratio when generating the final costing results to complete segments not specified on the element eligibility costing. Now it's time to review the distributed results.
Cost Distribution
This table shows you how the costing results are calculated for the distributed element.
|
Element Name |
Distributed element |
Input Value |
Distributed Input Value |
Account |
Debit (USD) |
Credit (USD) |
|---|---|---|---|---|---|---|
|
Regular Wages |
NA |
Earnings Calculated |
NA |
4310.1010.1010.3710.1010.6530.51200.100003. |
20,000 |
NA |
|
Regular Wages (Offset) |
NA |
Earnings Calculated |
NA |
4310.1010.1010.3710.1010.6530.51200.100004 |
NA |
20,000 |
|
Bonus |
NA |
Earnings Calculated |
NA |
4310.1010.1010.3710.1010.6530.51200.100001 |
10,000 |
NA |
|
Bonus (Offset) |
NA |
Earnings Calculated |
NA |
4310.1010.1010.3710.1010.6530.51200.100002 |
NA |
10,000 |
|
Income Tax |
Income Tax |
Tax Calculated |
Tax Calculated |
4310.1010.1010.3710.1010.6530.51200.100007 |
8,517 |
NA |
|
Regular Wages |
Income Tax |
Earnings Calculated |
Tax Calculated |
4310.1010.1010.3710.1010.6530.51200.100003 |
NA |
5,678 |
|
Bonus |
Income Tax |
Earnings Calculated |
Tax Calculated |
4310.1010.1010.3710.1010.6530.51200.100001 |
NA |
2,839 |