Oracle Payroll Cost Distribution to Projects Using Labor Schedules

Extend the power of distributing payroll costs to projects using labor schedules by leveraging the highly configurable Oracle Payroll solution, that is fully unified with Oracle Fusion Cloud Human Capital Management for efficient, compliant payroll processing across the globe—no matter your industry, company size, or worker types. This seamless integration allows for payroll costs to be configured for distribution to projects using the flexible project labor schedule distribution rules. This sets the foundation for future enhancements using time cards and payroll costing rules to distribute the payroll costs.

Once your business is ready to consumer this powerful and efficient integration, there are just a few steps that that you need to take:

1. Define labor schedules and the distribution rules for your staff.
2. Define the pay elements that you want to use to distribute payroll costs to projects.  
3. Run payroll with optimal efficiency and compliance.
4. Account the payroll costs.
5. Schedule the Import Payroll Costs process to distribute the payroll as defined.

You can also go back and get any costs that you may miss by setting up a labor schedule or pay element later than planned. Just use the start and end date parameters. Changes made in payroll will be redistributed to projects if payroll costing information changes or retro payroll costs are generated.

Specifically, the Import Payroll Costs process has been enhanced to include Oracle Payroll as a Transaction Source. In addition, we have added the ability to run the Import Payroll Costs process for all business units, regardless of transaction source.

Import Payroll Costs

The enhanced import will automatically run the Transfer Payroll Costs to Projects process, which gathers all payroll costs that:

1. Have been transferred to the Payroll subledger.
2. Are pay elements defined by the customer in Projects and are costed in Payroll.
3. Have a payroll process date between the start and end date specified.
4. Have a labor schedule version that is active for the person assignment or person assignment element.

Accounting attributes have been added in the Projects subledger that allow for referencing the payroll costing key flex field values to accomplish any derivation of the accounting attributes once the project cost is accounted.

Additionally, the payroll cost distribution has new functionality that allows for deriving the expenditure type from the pay element.  This allows for one labor schedule version to be used to distribute all the pay for a person, while allowing the pay element to derive the expenditure type.

To get a brief overview of all the enhancements this feature provides, watch the demo.

The business benefit of this feature is increasing the efficiency of integrating payroll costs to projects by simplifying the complexities of payroll to what is needed to ensure effective project financial management.

Steps to Enable

To enable this feature you must:

1. Manage Project Pay Elements Eligible for Distribution
   1. Requires the privilege Manage Payroll Pay Elements for Project Labor Cost to set up the pay elements to be distributed from Oracle Payroll to projects.
      • This privilege also provides the ability to Manage Pay Element to Expenditure Type Derivations, but this function is not required to integrate with Oracle Payroll.
   2. Note: This setup is not required for third-party import of payroll costs via the Transaction Source of Oracle Fusion Projects.
   3. A new role, Labor Distribution Manager is provided that has this privilege.

2. Manage Labor Schedules
   1. Labor schedules of the types below must be in status of active for the time periods of the payrolls executed.

Tips And Considerations

The Import Payroll Costs process start and end date parameters use the processed date of the payroll cost to define if it should be imported. Retroactive payroll costs will have a process date of the current payroll and will have retroactive pay period that will be used when distributing via labor schedules and deriving the expenditure item date.

Adjusting a payroll cost in Payroll will not create a new process date. The start date parameter in the Import Payroll Costs process should be based on your business rules of how far in the past can adjustments be made in payroll.

Key Resources

• Related Help:
  • Labor Distribution section of the Using Project Costing guide

• The expenditure type derivation from the pay element functionality is based on Idea 586271 from the Project Management Idea Labs on Oracle Cloud Customer Connect.

Access Requirements

To use this feature, you need these privileges:

• Privilege Name and Code
  • Manage Payroll Pay Elements for Project Labor Cost (PJC_MANAGE_PAY_ELEMENTS_FOR_PROJECT_PRIV)
  • Transfer Payroll Costs to Projects (PAY_TRANSFER_TO_PROJECTS_PRIV)
  • Manage Project Labor Distributions (PJC_MANAGE_PROJECT_LABOR_DISTRIBUTIONS_PRIV)
  • Manage Project Labor Schedules (PJC_MANAGE_PROJECT_LABOR_SCHEDULES_PRIV)
  • Manage Project Labor Schedules at Element Level (PJC_MANAGE_PROJECT_LABOR_SCHEDULES_AT_ELEMENT_LEVEL_PRIV)
  • Use REST Service - Payroll Element Definition List of Values (PAY_REST_SERVICE_ACCESS_PAYROLL_ELEMENT_DEFINITION_LOV_PRIV)
  • Use REST Service - Workers List of Values (PER_REST_SERVICE_ACCESS_WORKERS_LOV_PRIV)