Payroll Cost Distribution to Projects Using Payroll Costing Configuration

This demonstration shows how you can use the Payroll Cost Distribution to Projects Using Payroll Costing Configuration feature to enhance your business.

This feature is part of the ongoing investment in the effective and efficient distribution of payroll costs to their associated projects.

I will now provide an overall context of how this new feature is part of the comprehensive labor distribution functionality.

Starting in the upper left, everything starts with People and their Assignments. People are paid either by a salary or based on hours that are defined through their time sheets. Currently, all of the activities represented in this flow can be done for both first party integrations with Oracle Fusion products, or via third party or external integrations of payroll and time sheet capture systems. This new feature is enhancing the Payroll to Projects Distribution section of this diagram by adding a new labor schedule type of Payroll Costing Configuration. This continues the investment made in the first party integration of Oracle Project Costing with Oracle Fusion Payroll, adding another alternative to enhance your options for distributing payroll costs to projects. Specifically, this feature allows for the use of the payroll costing attributes to decide how to distribute the payroll cost, regardless of the person assignment or pay element that is associated with the payroll cost.

Future integration with first- and third-party Time Sheets as the basis of the payroll cost distribution is on the roadmap, but unplanned at this time.

To understand how this new feature can enhance your business, I will demonstrate a scenario that uses this new labor schedule type along with the existing person assignment based labor schedule distribution method.

Vision City is receiving funding for Alzheimer's observational research that is being done in the senior center within its scope of responsibility. With the new functionality of labor schedules that enable distributing the payroll costs by costing configuration, employees that are getting their pay costed to the senior center can be distributed to the associated sponsored project for tracking the costs accordingly.

The Gantt chart displayed, illustrates the tasks associated to the observational research. This sponsored project is sponsored by both the National Institutes of Health and the Department of Health and Human Services.

To meet the contractual obligations, vision city is creating a labor schedule that will distribute payroll costs for the calendar year of 2024 for staff that are getting their payroll costed to the senior center and the specific program doing the research.

The context of the new labor schedule is the Legislative Data Group. Payrolls are specific to a Legislative Data Group and have specific costing configuration associated. The version being created, as stated, is for the calendar year of 2024.

This new type of labor schedule has an attribute titled precedence. This allows for multiple labor schedules in the legislative data group in a precedence order to distribute the costs; the versions will still need to be active for the time period of the payroll cost. That will be illustrated as the demonstration continues.

Because we are in the context of a legislative data group, the specific payroll costing attributes are available to be used to compare to payroll costs for distribution.

The first two values of the Vision City payroll costing configuration for this legislative data group - VSL Funds and VSL Department. Vision City labor distribution administrator choses the Quality-of-Life program and the senior center location for this precedence order.

Once the payroll segment values are chosen and the labor schedule header and version are created, the distribution rules can be assigned. In this case, we are setting the distribution to 80% to NIH and 20% to the department of health and human services.

This labor schedule is complete and in an Active status to start distributing payroll costs for the calendar year for all staff that have payroll costs costed to the two segment values defined.

Vision City has also decided to use projects to manage their shared IT services team for the whole institution. So, another labor schedule is created with the precedence of 20 to follow the other labor schedule created for the same calendar year.

This labor schedule will distribute all payroll costs that are costed to the department of Information Technology to the non-sponsored project they have set up for this and other shared services organizations.

An additional shared services team that is used for program and project management specifically will also be costed in projects to the Executive office task 4.1.

These staff are costed in payroll to an unspecified department, because they are supposed to always be charged to a project and the salaries account is added to this schedule to ensure other employee expenses are not charged to the projects.

We now have 3 labor schedules in precedence order 10, 20, and 30 to distribute the payroll costs to meet the requirements. The screen illustrates that there are 3 other labor schedules of precedence 100, 200, and 300 for comparison.

Now I will illustrate the payroll costs for the March 2024 payroll's run for four people and three of them meet the criteria of the labor schedules based on their payroll costing segments as defined.

Sarvan is in the information technology department. Cody is a clinician in the senior center location and the program of quality-of-life. Laura James is a project manager in the program office and is as discussed charge to the department of unspecified. Roger Wiley is working for the police administration and his payroll cost or costed to the department. Roger's cost has no applicable labor schedules so the import payroll cost process and projects will not bring the cost over at all. I will illustrate this shortly.

Even though this is illustrated the values in the March payroll you can assume all payroll costing attributes are the same for the April payroll as well.

During the month of March there is some negotiation with the project management office and the senior center, and it is decided that Laura James will be assigned as the project manager for the Alzheimer's research project. It is agreed that she will start in April and provide project management services for the rest of the calendar year.

The contract is reviewed, and her distribution rules are configured accordingly. Remember this starts on April 1. This is an example of a person an assignment type of labor schedule. We run the import payroll cost process for both March and April. The import payroll cost process is intelligent and only picks up cost from payroll that have been transferred to the GL on the payroll side and have a labor schedule that can distribute the payroll cost.

So, as discussed earlier, Roger Wiley in the police administration department has no labor schedule to distribute his cost, so they will not be transferred from payroll to projects. Clayton Smith, the labor distribution accountant is reviewing the payroll cost and sees that for the date range of March 1 to April 30, there are some errors and initiates his review on Laura's cost.

You can see for the April month payroll her costs are distributed to the new labor schedule version that is for her assignment starting in April, not the payroll cost configuration labor schedule that was started in March. A little further review shows that the cost is in error because the budget for the Alzheimer's observational project has an issue. We will resolve that shortly.

Switching the status search chip to success for the same time period, illustrates that there are eight costs that succeeded as well and those are to the internal organization project number. You can see here that Laura James' regular salary for March was distributed using the payroll costing labor schedule while April cost was distributed in error to the Alzheimer's sponsored project, even though both are matching criteria for the April payroll cost. This is because the assignment and the assignment element labor schedule types take precedence over the payroll costing configuration labor schedules if a cost matches more than one.

To close out the demonstration with all cost and success I have updated the Alzheimer's project budget with advisory controls to let the cost pass funds checking. I could've updated the amounts at the appropriate budget resources as well to resolve the error. I then select all the costs and re-distribute them through the existing labor schedules and now all 16 are in a successful state with the yellow alert icon for advisory.

In summary, Vision City used the payroll costing configuration labor schedules to enhance their business by: Streamlining the payroll cost distribution of their Senior Center and Quality of Life program staff to projects to properly manage the work and allocate the costs according to contractual agreements.

Additionally they are distributing all IT staff payroll to their IT specific task 2.1 on the internal organization project, since this staff is used as project personnel across the institution.

Also, they are managing the group of program and project personnel ensuring that their payroll costs are distributed to the Internal Project when not being leveraged by a project generating a new service or product.

They are confidently setting up a specific assignment based labor schedule for Laura, starting on the agreed upon dates and knowing the import payroll costs process intelligently prioritizes this schedule over the Program Office Staff schedule, even though the dates overlap. Vision City distribute their payroll costs effectively and efficiently in support of their mission.

This completes the demo. Thanks for watching.