Costing and offset results are created when you process payroll runs and
payments.
For example, when calculating the payroll, the application typically costs a value in a
salary run result as a debit to an expense account and it offsets the same amount as a
credit to a payroll liability account.
Account numbers are created by the application and
based on the information entered into the cost allocation key flexfield
structure when you use the costing setup tasks.
Costs Calculated
Based on Account Type
This table shows you the different steps performed
by the application to calculate costs based on the type of account.
Account
|
Cost Calculation Steps
|
Cost
|
-
Calculates costs for the input
values specified on the element eligibility record.
-
Builds each segment by checking
for:
-
Costed and Distributed costing
types at each level of the cost hierarchy.
-
Fixed Costed costing types at the
payroll, element, and element eligibility levels
-
Calculates the cost for each account,
when percentages of the costing is allocated to different accounts.
-
Places any unallocated amount in
a default account.
-
Places invalid results in a suspense
account.
-
Determines the cost account, if
a segment has a blank value. The determination depends on whether
the segment of the cost allocation key flexfield is required or optional
and whether a suspense account is defined.
-
Optional, regardless of whether
a suspense account is defined, costing result displays a null segment
-
Required, and suspense account
is defined, costing result is placed in suspense account
-
Required, and suspense account
isn't defined, costing result errors
-
Adds cost results for a distributed
element to the elements included in the distribution group, based
on the ratio each element contributes to the total amount for the
distribution group.
-
Creates a debit or credit result
based on the element classification settings.
|
Priority
|
-
Calculates the cost using the account
number specified for the priority account on the element eligibility
record.
-
Calculates the cost account number
for the remaining percentage when you allocated only a percentage
of the cost.
|
Offset
|
-
Calculates the offset using the
segments specified for the offset account on the element eligibility
record. For blank segments, uses the account number derived for the
equivalent segment of the cost account for the same element eligibility
record.
|
Payroll Liability, Cash Clearing, Cash
|
-
Calculates the account number using
the segments specified for the payment source on the Payment Source
page.
|