Distributed Costing with a Zero Sum Result Retroactive Distribution Group

The payroll process configuration parameter Distributed costing for a retro element uses normal elements to distribute the costs of a retroactive element based on regular entries and retro entries.

However, regular entries from the current period are used only in the distribution calculation when the sum of the retroactive entries in the distribution group is 0.

When the payroll process configuration parameter Distributed costing for a retro element is set to Y and the sum of the retroactive entries in the distribution group is 0, the deduction distributes based on the distribution group entries for the current payroll period and the retroactive entries. The parameter default is Y.

For example, an employee's original earnings are processed and costed for January and February. Now, in March, the earnings and deductions are changed effective January 1st and the retroactive entries for the differences are created in month of March for processing. The sum of the retroactive entries in the distribution group is 0. In this scenario, when you set this profile option to Y, the retroactive deduction amount distributes on the current pay period earnings in addition to the retroactive earnings. However, in this scenario, when you set this profile option to N, the process isn't able to distribute and sends to the suspense account.

Note: In the table below, you are viewing the current pay period (CPP) Earnings1, CPP Earnings 2, retroactive element earnings (REE) Earnings 1, REE Earnings 2 and REE Earnings 3. The sum of the retroactive entries in the distribution group is 0.

Example:

Element	Original Earnings		Changes		Retro (REE)	Current (CPP)
	31-Jan	28-Feb	31-Jan	28-Feb	31-Mar	31-Mar
Deduction	100	100	150	150	100	100
Earning 1	500	500	750	750	500	200
Earning 2	600	600	450	450	-300	100
Earning 3	400	400	30	300	-200	0
Distribution Group Total					0

Deduction REE uses all 5 elements: Earning 1 REE, Earning 2 REE, Earning 3 REE, Earning 1 CPP, and Earning 2 CPP

Deduction CPP uses 2 elements: Earning 1 CPP, and Earning 2 CPP