Cost Payroll Payments

The Calculate Costing of Payments process calculates costs for payments, including void and canceled payments and the rollup payments from the Run Third-Party Payment Rollup,. If you're reconciling payments, the process costs unreconciled, reconciled, and cleared payments.

Costing payroll payments includes these steps:

1. Submit the Calculate Costing of Payments process

2. Verify costing results for payments

3. Correct costing results for payments

Submit the Calculate Costing of Payments Process

Submit the Calculate Costing of Payments process from the payroll checklist. The frequency depends on your accounting practices. Most enterprises cost payments before or on the actual payment date. Use the Consolidation Group parameter to simplify the payroll post processing. If you run the payment processes with a value in the Consolidation Group parameter and no value in the Payroll parameter, run the Calculate Costing of Payments process with no value in the payroll parameter too.

If you reconcile payments and pay employees by issuing checks/cheques, resubmit the process again. This table will help you decide when to resubmit.

When to Resubmit the Process	Reason
Several days after the payment date	To cost the reconciled payments
Last business day of the month or the last date of the bank statement cycle	To simplify reconciling balances and bank statements when using General Ledger and Cash Management

Two factors control which account the process uses to cost the payment result:

• Account information set up for the payment source on the Costing of Payment Sources page

• Decision to reconcile payments

This table shows you the account typically used if you reconcile payments.

Payments Reconciled	Resulting Account
No	The process debits payroll liability accounts and credits the cash account.
Yes	The process creates entries that debit the payroll liability accounts and credit the cash clearing accounts. When the payments clear, resubmit the process to create entries that debit the cash clearing accounts and credit the cash accounts.

Verify Costing Results for Payments

Review costing results from the Person Process Results.

Depending on your payment method, and whether you reconcile payments, you may have a lag time between the date you issue the payment and the date it clears. For example, if you issue checks/cheques and reconcile them, you can review costing results the Person Process Results or Person Results page.

Correct Costing Results for Payments

Most enterprises resolve errors during implementation. If results require correction, you might take these steps:

1. Roll back the Costing of Payments process for the records that were costed using the incorrect account number.

2. Update the costing setup information for the payment source.

3. Resubmit the Costing of Payments process to negate the original costing and create the correct costing.