Set Up Distributed Costing for an Element

Set up example of how you set up costing for an element whose costs you distribute to the earnings elements of a distribution group.

This table summarizes the key decisions for this scenario.

Decisions to Consider	Example
Which element's costs are you distributing?	Employer Union Pension Expense element
Which distribution group should carry the costs of the distributed element?	Pensionable Wages
Which input value of the distributed element does the costing process use to calculate costs?	Pay Value
What is the natural account number to use for the cost account segment?	5220 Employer Union Pension Expense account
Which offset account number is used to balance this cost account?	00.000.2152 Employer Union Pension Payable liability account

Here's an example where the payroll manager costs the employer portion of the pension liability by creating an element for the employer union pension expense, and a distribution group that includes the employee's wage elements.

Prerequisites

1. Set up the Cost Allocation key flexfield.

2. Define the required pensionable earnings elements.

3. Create an element object group, Pensionable Wages, for the pensionable earnings elements.

4. Create costing for element eligibility records for each of the pensionable earnings elements, such as the regular wages and overtime wages.

Create Costing for a Distributed Element

1. From My Client Groups, click Show More.

2. Under Payroll, click Costing of Elements.

3. Search for the element eligibility record for the Employer Union Pension element, and click Create Costing Details.

4. Enter 1/1/00 as the effective start date, and then click Continue.

   As a best practice, enter the same effective start date you specified for the element eligibility record.

5. Complete the fields in Costing Information.

   Field	Value
   Costing Type	Distributed
   Distribution Group	Pensionable Wages
   Transfer to General Ledger	Selected

6. In Costed Input Values, click Add Row. Complete the fields as shown in this table.

   Field	Value
   Input Value	Pay Value
   Costed	Yes

7. In Cost Accounts, select 5220 for the natural account segment.

   For this example, the only segment you're entering is the natural account segment for the employer liability.

8. In Offset Accounts, complete the fields, as shown in this table.

   Field	Value
   Division	00
   Department	000
   Natural Account	2152

   For this example, the offset account is the payable liability account, and the balance sheet account numbers are for the Division and Department segments.

   Note: If a value is captured for the same segment at higher levels in the costing hierarchy of distribution group members, then that segment value is considered though the value is defined at element eligibility level of distributed element.

9. Click Submit.