Correct Costing for Payroll Run Results

Review and correct the costs placed in suspense and default accounts after you calculated payroll.

Let's say, you might correct invalid cost account numbers, or correct unallocated costs. You can correct cost results before or after the payroll run completes.

Correction Method to Use

This table helps you decide the correction method to use based payroll status or locked payroll run results.

Payroll is Complete	Scenario	Correction Methods
No	Your enterprise reviews the payroll run and costing results before you process payments. For example, you run weekly payrolls to generate project-based costing.	The number of records usually determines the method used to correct the results: For a few records, such as records where the allocated costs don't total 100 percent, correct the costing setups, mark those records for retry, and retry the payroll. For numerous records, such as records with an invalid account number, roll back the payroll calculation, correct the costing setups, and retry the payroll run. If a message informs you that a process locks the run results, you must roll back the process before correcting the costing.
Yes	Your enterprise has a short interval between the date earned and the date paid. For example, you process payments directly after reviewing and correcting payroll run results, and do costing corrections later.	Depending on the type of correction required, process a cost adjustment or submit the Calculate Retroactive Costing process.

Cost Adjustments and Retroactive Costing

This table helps you decide when to process a Cost Adjustment or to submit the Calculate Retroactive Costing process.

Correction Method	Where to Process the Correction	When to Use the Method	What is Updated	Consequences
Cost Adjustment	Person Results	Correcting a few records for a person and the effective date of the costing adjustment is for an open accounting period.	The person's costing entry for a run result, such as the allocated amount or percentage, the distribution, and the account numbers.	Adjusts costing for the current payroll run. The application uses the original costing setup in the next payroll run. The adjusted costing entry is used in reports or in later calculations performed against that entry.
Calculate Retroactive Costing	Payroll Checklist	Correcting numerous errors due to invalid entries placed in suspense account. Correcting costing setups as a basis for future payroll runs, such as adding the account number for a new line of business.	The account numbers used to process the run result.	Updates the original costing setups. The application compares the recalculated and original entries, and where different, offsets the original entries and creates new entries for the current payroll period. The application uses the revised information in the next payroll run.

Example

This example helps you decide when to use each correction method.

Correction Method	Scenario	Steps
Cost Adjustment	An employee worked for two department cost centers during a payroll period. A manager notifies you that you should divide the employee's wages between the two departments.	Process a cost adjustment. Allocate the appropriate percentage to each department's cost center. The allocation applies to the current payroll result only. It doesn't change the costing setup used to cost the employee's wages for the next payroll run.
Retroactive Costing	A manager informs you that a mid-year reorganization of administrative departments requires that you cost the employee parking allowance to a different department. The last semimonthly payroll completed July 15.	Update the parking allowance element eligibility records with an effective date of July 1, and correct the costing setup information. Submit the Calculate Retroactive Costing process.