Distribute Payroll Costs to Projects Using Organizations

This demonstration shows how you can use the Distribution of Payroll Costs to Projects Using Organizations functionality to enhance your business.

This feature is part of the ongoing investment in the effective and efficient distribution of payroll costs to 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 reported through their timecards. Those timecards can also be imported to projects for costing and / accruing for payroll distribution of actuals.

Once payroll costs are created, costed, and accounted, the Payroll to Projects Distribution matches payroll costs with labor schedules and distributes the costs using previously accrued time quantity entries or percentage-based distribution, depending on the applicable labor schedule distribution rules.

All the major activities represented in this flow can be done for both first-party integrations using Oracle Fusion products, or via third-party integrations of external payroll, time reporting, and labor scheduling systems. This new Organization type of labor schedule enhances the “Payroll to Projects Distribution” step by allowing the business unit and / or the department values of a workers’ assignment to define the distribution rules of the associated payroll costs. In the rest of this demonstration, I will illustrate this new labor schedule type in detail.

I will now demonstrate the capability of the new labor schedule type. A labor distribution administrator creates an organization labor schedule in a similar fashion as the three previous types. As illustrated in the image, there is a subtle change to the choice of which labor schedule type is be created. There is now a new drop-down list to choose.

With this new type, there will be four different types of labor schedules.

First, the assignment, which is defined by a person and their assignment with additional capability of being able to choose a specific pay element for that person in assignment. Second is the element, which is defining a labor schedule for a specific pay element of a payroll cost.

Thirdly, there is the payroll costing configuration labor schedule, which distributes payroll costs based on the costing configuration attributes from oracle Fusion payroll. Note, this type is only useful when using oracle fusion payroll and not applicable to third party payroll systems. The fourth option now is the organization, which is the new labor schedule type. The order in which these labor schedules are applied to payroll costs are, first, the assignment with a specific pay element specified. Next, the element specific labor scheduling. Thirdly, the assignment as a whole. Fourth would be the labor schedule defined for an organization. And then, lastly, the payroll costing attributes would be applied. I will now go on to illustrate the organization level Labor Schedule.

When creating an organization labor schedules, the organization structure within a business unit is utilized. This is the organizational structure for the business unit of vision city operations. One of the departments is the City University that also has child organizations or nodes representing the organizational hierarchy.

We've created an organization labor schedule at the business unit level, and it will distribute applicable payroll costs to a nonproject-based distribution rule for tracking and managing those costs. We do not have to select that include child nodes, because it will work for any person's assignment that has the matching business unit value.

We've also created a labor schedule specific to the university and applicable payroll costs will be charged to the specified nonproject labor costs. We have selected the child nodes option for the university so that all payroll costs for workers in the university will use this schedule if no other applicable higher precedent schedule exists. We created a labor schedule for the biology department, workers in that department are assigned to provide a biological environment QA assessment on two major projects for the city. One, a Bridge remediation Project and the other a citywide tolling system implementation. Those projects are using timecards as the basis for distributing workers' payroll, so all staff in the department are expected to record time to those projects. Lastly, Julie, the biology department, QA manager, also teaches during the academic year, so the project sponsors agreed to have her at 25% charge to each project for the guidance and oversight while teaching.

Monthly payrolls are executed for August, September, and October. Hector is a project manager in the Vision City maintenance department that is part of the Vision City Operations Business Unit. And Julie and Heather both work in the university in the biology department. As illustrated previously, Julie also is the only person of these three that has a specified assignment labor schedule starting in September.

Julie and Heather's timecards are imported into Project costing and accrued for pending distribution of the payroll costs after payroll is run. You can see, Julie, has assigned ours to both the interstate Easy Pass and the bridge remediation projects. Heather has also applied time to these two projects and has applied it for more months, then Julie. Julie and Heather's time car quantities are costed in projects at a rate of zero since they both have an active timecard based labor schedule for these time periods.

The Payroll to Project distribution flow is completed using the import payroll cost schedule to process. After successfully importing payroll costs from oracle fusion payroll, Clayton Smith, a labor distribution accountant, reviews the imported costs for Hector in the managed labor cost page. The costs were pulled from the payroll automatically and distributed via the business unit wide distribution version of the organization labor schedule type.

Clayton continues on to review Julie's cost distribution and sees that in August she was being distributed based on timecards, as was intended for her department and during the summer months. The costs were pulled from payroll automatically and distributed via the bio QA environmental assessment version of the organization labor schedule type. Clayton views Julie's costs for September and notices that due to her individual person assignment labor schedule for the academic year, her costs are now following the distribution instructions from that specific labor schedule that takes precedence over the organization type labor schedule.

Clayton reviews Heather's costs, who is a person in the same department as Julie, but is working hourly year round as a QA analyst on the bridge remediation and interstate easy pass installation projects. In September, Heather's costs continued to distribute based on time cards, even though Julie's changed and were distributed based on her separate non-timecard-based assignment labor schedule.

In summary, the organizational hierarchy and the precedence order of the labor schedule types derived the distribution of the costs reviewed.

Hector's payroll costs, based on his assignment, are within the business unit, and he had no other matching departmental or assignment or element labor schedules to take precedence.

Vision City University had a department-based organization labor schedule, but Julie and Heather were in a child node that had one that takes precedence. Julie and Heather's payroll costs were distributed using the biology department distribution rules that were timecard-based. This took precedence over the Vision City University Department level labor schedule and the business unit level used for Hector, even though they are in the hierarchy.

Furthermore, this illustrated that if there is a department wide labor schedule, but an individual worker within the department has a specified assignment labor schedule, that will take precedence, as illustrated by Julie's September payroll costs.

This illustrates the power and flexibility of this additional organizational level labor schedule.

This concludes the demonstration. Thanks for watching.