No Source Assignment Found For Cost Elements

Payroll Cost Allocation Key Flexfield Setup: Critical Choices

The cost allocation key flexfield creates a structure that captures the account codes you use to create accounting entries, and to report and track your labor costs. When planning how to create a key flexfield structure, consider the following choices:

  • Structure of the cost allocation key flexfield

  • Value sets for the segments

  • Cost hierarchy levels required for each cost account segment

  • Segments required for the offset account

  • Number of structure instances of the cost allocation key flexfield

Structure of the Cost Allocation Key Flexfield

Decide what structure to use for the cost allocation key flexfield.

The structure of the flexfield defines the segments to include, their order, and the value sets to validate the data entered in the segments. Using the predefined Cost Allocation key flexfield to create the structure, you specify:

  • Segment labels, which correspond to the cost hierarchy levels

  • Column headings, which correspond to the segment of your account structure

Tip

As a best practice, create a structure based on the structure of the Accounting flexfield used for the chart of accounts that receives the payroll costing entries. Use a similar sequence of segments and naming conventions to facilitate setup.

The structure you deploy generates a reference table on the costing setup pages. The following figure illustrates how the column heading and segment label make the company account information available for entry on the Manage Costing of Payroll page.


The following table lists questions to consider before you create the cost allocation key flexfield structure.

How many cost allocation key flexfield segments does your Accounting flexfield include?

You must create a segment for each corresponding segment of the Accounting flexfield.

Do you need to reserve segments for future use?

You can't update the flexfield structure. You can create segments for later use, such as new lines of business, and display them as needed.

Do you capture context sensitive information for legislative purposes?

Create additional segments to capture context sensitive costing, such as separate liability accounts maintained for each state and state tax.

Do you capture information used by other applications?

Create additional segments, for example, to record the breakdown of costs of a project for reporting purposes.

Value Sets for the Segments

Decide whether to use existing value sets or to create new value sets.

You associate each segment to a value set created on the Manage Value Sets. For example, you might reuse an existing value set that you defined for your accounting flexfield, or create a subset of those values, which only apply to payroll.

Tip

Consider creating a single value when several accounts use the same value. For example, you might use a value set with a single value of zeros as a placeholder for account segments, such as future use segments.

The following figure shows an additional segment added to the structure that doesn't have a corresponding segment in the Accounting flexfield, and the value sets associated to each segment.


Segments Required for the Offset Account

Decide which segments of the offset account require costing.

The offset account balances the cost account. It uses the segments of the cost account unless you specify a different value for the corresponding segment. For example, if the only difference between your cost and offset accounts is the natural account segment, for the element eligibility segment label, you would select the natural account for the offset account.

Cost Hierarchy Levels

Consider which level of the cost hierarchy is the primary source of values for that segment and which levels should receive overrides. These decisions control which cost account segments the application displays on the costing setup pages.

The following table includes examples of the segment labels you might specify for costing.

Payroll

Select Payroll for segments that seldom change for the people assigned to the payroll, such as company, line of business, and future use segments.

Element Eligibility

Select Element Eligibility for natural accounts.

You also use this level for cost center segments needed for balance sheet accounts, such as deduction elements which are usually created at the payroll relationship level.

Department

Select Department for cost centers.

Job or Position

Select Job to compare and roll-up costs based upon job category.

Select Position if you are using position management at your enterprise, to better track the cost of turnover to the enterprise.

Costing at these levels requires higher maintenance to set up and manage the costing in diverse and complex organizations.

Person

Select Person to cost at the payroll relationship, terms, and assignment level, and for elements at each of these levels.

You might select Person to enable allocation of wages when costs are shared by several cost centers, or to override the activity or natural account segment that is usually enabled at the element level.

Element Entry

Select Element Entry to override all other levels, for example to enable entry of cost center information for several payroll periods when a person works at another cost center.

Number of Structure Instances

You create structure instances of your cost allocation key flexfield that you then associate to legislative data groups. Structure instances share the same set, arrangement, and properties of the cost allocation key flexfield structure. If a legislative data group requires different value sets for the flexfield segments, create a separate instance for that legislative data group.

Cost Hierarchy: Explained

The cost hierarchy represents the different levels at which you can enter cost information. This topic covers:

  • Cost hierarchy levels

  • Levels checked for different accounts

  • Levels checked when calculating run results

The level at which you enter costs is a key determinant in how the application builds the account number. The application starts with the lowest level (element entry) and ends with the highest level (payroll), checking for a value at each level until a value is found.

Cost Hierarchy Levels

When the application builds the account number, it starts with the lowest level (element entry) of the cost hierarchy and ends with the highest level (payroll). It checks each level sequentially until it finds a value. If it doesn't find a value, it places the costing result in a suspense account.

The following figure shows the different levels of the costing hierarchy.


Levels Checked for Different Accounts

The costing process considers the type of account and the costing type of the element to determine which levels to use for processing.

The following table summarizes the levels checked for different types of accounts.

Cost

Costed, Distributed

All

Cost

Fixed

Payroll, Element Eligibility, Element Entry

Suspense, Default

Not applicable

Payroll, Department

Offset, Priority

Not applicable

Element Eligibility

Levels Checked When Calculating Run Results

The Calculate Payroll process builds the account number for the payroll run results as of the current payroll period. The Recalculate Payroll for Retroactive Changes process checks for costing details as of the current payroll period and the original payroll period.

The following tables for deriving costing details for elements and retroactive pay elements show detailed information, including:

  • Which levels the application checks for costing details, based on the type of account and costing type

  • Where you set up the account numbers for that level

Element Entry

Cost

Fixed Costed, Costed, Distributed

Manage Element Entries

Person Element - Assignment

Cost

Costed, Distributed

Manage Costing for Persons

Person Element - Terms

Cost

Costed, Distributed

Manage Costing for Persons

Person Element - Payroll Relationship

Cost

Costed, Distributed

Manage Costing for Persons

Person - Assignment

Cost

Costed, Distributed

Manage Costing for Persons

Person - Terms

Cost

Costed, Distributed

Manage Costing for Persons

Person - Payroll Relationship

Cost

Costed, Distributed

Manage Costing for Persons

Position - Assignment

Cost

Costed, Distributed

Manage Costing of Positions

Position - Terms

Cost

Costed, Distributed

Manage Costing of Positions

Job - Assignment

Cost

Costed, Distributed

Manage Costing of Jobs

Job - Terms

Cost

Costed, Distributed

Manage Costing of Jobs

Department - Assignment

Cost, Default, Suspense

Costed, Distributed

Manage Costing of Departments

Department - Terms

Cost, Default, Suspense

Costed, Distributed

Manage Costing of Departments

Element Eligibility

Cost, Offset, Priority

Fixed Costed, Costed, Distributed

Manage Costing of Elements

Payroll

Cost, Default, Suspense

Fixed Costed, Costed, Distributed

Manage Costing of Payrolls

Retroactive Pay Element Entry

First level checked for costing details when building each account segment for retroactive pay elements only. If costing details are not found for that segment, the application proceeds to the next level, the Retroactive Pay Element Eligibility level.

Current

Cost

Fixed Costed, Costed, Distributed

Manage Element Entries

Retroactive Pay Element Eligibility

Next level checked for retroactive pay elements only. If costing details are not found for that segment, the application proceeds to the Element Entry level of the original payroll period.

Current

Cost

Fixed Costed, Costed, Distributed

Manage Costing of Elements

Element Entry

Next level checked.

Original

Cost

Fixed Costed, Costed, Distributed

Manage Element Entries

Person Element - Assignment

Next level checked.

Original

Cost

Costed, Distributed

Manage Costing for Persons

Person Element - Terms

Next level checked.

Original

Cost

Costed, Distributed

Manage Costing for Persons

Person Element - Payroll Relationship

Next level checked.

Original

Cost

Costed, Distributed

Manage Costing for Persons

Person - Assignment

Next level checked.

Original

Cost

Costed, Distributed

Manage Costing for Persons

Person - Terms

Next level checked.

Original

Cost

Costed, Distributed

Manage Costing for Persons

Person - Payroll Relationship

Next level checked

Original

Cost

Costed, Distributed

Manage Costing for Persons

Position - Assignment

Next level checked.

Original

Cost

Costed, Distributed

Manage Costing of Positions

Position - Terms

Next level checked.

Original

Cost

Costed, Distributed

Manage Costing of Positions

Job - Assignment

Next level checked.

Original

Cost

Costed, Distributed

Manage Costing of Jobs

Job - Terms

Next level checked.

Original

Cost

Costed, Distributed

Manage Costing of Jobs

Department - Assignment

Next level checked.

Original

Cost, Default, Suspense

Costed, Distributed

Manage Costing of Departments

Department - Terms

Next level checked.

Original

Cost, Default, Suspense

Costed, Distributed

Manage Costing of Departments

Element Eligibility

Next level checked.

Original

Cost, Offset, Priority

Fixed Costed, Costed, Distributed

Manage Costing of Elements

Payroll

Last level checked for costing information. If costing setup information is not found for that segment and the resulting costing account number is incomplete, the entry is costed to a Default account or, if invalid, to the Suspense account

Original

Cost, Default, Suspense

Fixed Costed, Costed, Distributed

Manage Costing of Payrolls

Setting Up the Cost Allocation Key Flexfield: Procedure

To generate costing results for your payroll run results and payments, you must create, deploy, and map a cost allocation key flexfield to your legislative data group in the Setup and Maintenance work area. You perform the following steps to set up and deploy the flexfield

  1. Create payroll values sets.

  2. Define the cost allocation key flexfield structure.

  3. Create structure instances.

  4. Map the cost allocation key flexfield in Oracle Fusion Subledger Accounting.

Create Payroll Value Sets

Perform the following steps to define value sets.

  1. Select the Manage Value Sets task.

  2. Create the value sets you require for your payroll account segments.

Define the Cost allocation Key Flexfield Structure

Perform the following steps to set up the flexfield structure.

  1. Select the Manage Cost Allocation Key Flexfield task.

  2. In the Search Results section, select the row for the predefined cost allocation key flexfield, identified by the key flexfield code COST.

  3. Click the Manage Structures tab.

  4. On the Manage Key Flexfield Structures page, create a flexfield structure, with the number of segments required for your account combinations.

  5. Save the structure.

  6. Edit each segment, completing the required information, such as selecting a value set to use for the segment.

  7. In the Segment Labels region:

    1. Specify which levels of the cost hierarchy you can enter account numbers for the cost account.

    2. Select Offset, if you can enter a value for the Offset account for this segment.

  8. Save the segment.

Create Structure Instances

Create a separate instance for each legislative data group that requires unique value sets.

  1. On the Manage Cost Allocation Key Flexfield page, click the Manage Structure Instances tab.

  2. On the Manage Key Flexfield Structure Instances page, click Create to create flexfield structure instances.

  3. Enter a Structure Instance Code, and select the following options:

    • Enabled

    • Dynamic Combination Creation Allowed

  4. Edit the segments to specify a different value set. Decide whether to display the segment.

    For example, you might select a different value set or decide to hide a segment reserved for future use.

  5. Save your instance, and deploy the flexfield.

  6. Use the Manage Legislative Data Groups task to associate the flexfield to a legislative data group.

    Tip

    You can associate the same instance to several legislative data groups, as long as they all use the same value sets.

Map the Cost Allocation Key Flexfield in Subledger Accounting

The application implementation consultant with the appropriate Financials duty roles sets up chart of accounts, calendars, and ledgers in Oracle Fusion Financials, and accounting methods and rules in Subledger Accounting.

  1. Create account combinations in Oracle Fusion General Ledger that correspond to each of the account combinations you plan to use in payroll.

    Important

    Skip this step if you set up your General Ledger accounting flexfield to allow dynamic account combinations. Saving your account rules in Subledger Accounting automatically creates the accounts for General Ledger.

  2. Specify rules in Subledger Accounting to use the cost allocation key flexfield instance as the segment source in the accounting key flexfield for the chart of accounts.

  3. On the Manage Account Rules page, map your cost allocation flexfield segments to the accounting key flexfield segments.

Payroll Costing Components: How They Work Together

Payroll costing integrates components required to accurately report labor costs and generate journal entries for your payroll run results and payments. To set up and manage payroll costing, you must have the appropriate duty roles to create components used by payroll costing, such as ledgers that you associate to legal entities, accounting methods and rules, and banking information.

Payroll costing involves creating the following components:

  • Financial ledgers, calendars, accounting periods, and legal entities

  • Subledger accounting methods and rules

  • Cash Management bank account and reconciliation information

  • Cost allocation key flexfield

  • Payroll costing accounts

The following figure illustrates how Oracle Fusion Global Payroll works with the applications listed in the table.

Oracle Fusion Financials

Maintain chart of accounts, ledgers, accounting periods, and calendars for legal entities

Oracle Fusion Cash Management

Reconcile payments with bank statements

Oracle Fusion Subledger Accounting

Create journal entries for transfer to Oracle Fusion General Ledger


The following figure shows the different components you set up for payroll costing grouped by application.


Financials

You create components in Financials that support payroll costing, such as general ledgers, accounting calendars, and accounting periods. For example, you create ledgers in Financials that you later associate to your payrolls.

Note

If you didn't install Financials, configure your offerings and select the feature choice for the Payroll Costing Options for Maintain Subledger Application and Accounting Method.

When setting up components in Financials:

  1. Create an Accounting key flexfield for the chart of accounts.

  2. Create value sets for the new structure.

  3. Create General Ledger accounts that record payroll costs, such as cost, offset, payroll liability, cash clearing, and cash accounts.

When you create the equivalent accounts in payroll, ensure that you use the same natural account as your General Ledger accounts. For example, you ensure that the Cash account uses the same natural account, so that you can easily reconcile the cash account balance with the bank balance for transactions that occur in the same bank account.

You must have the Financials duty roles required to perform these tasks.

Subledger Accounting

Subledger Accounting generates subledger journals, creates subledger balances, and generates general ledger journals. Payroll supplies predefined data for Subledger Accounting, such as event classes for event entities.

When setting up components that Subledger Accounting uses to create and post accounting entries, you create:

  1. Accounting methods

  2. Journal line and entry rules

You must have the Subledger Accounting duty roles required to perform these tasks.

Cash Management

Payroll requires bank account information for check and electronic funds transfer payment types, and optionally for cash and money order payment types. If you plan to cost the payments that you issue, complete the bank, branch, and bank account information for the payment source and specify the General Ledger cash account.

To reconcile your payments, you create reconciliation rules, map transaction types to payment types, create bank statement transaction codes, and specify the General Ledger accounts for cash clearing and reconciliation differences.

You must have the Cash Management duty roles required to perform these tasks.

Cost Allocation Key Flexfield

You create an account key flexfield structure based on the Cost Allocation key flexfield code, and then create a structure instance that you associate to appropriate value sets. You map the structure instance to a legislative data group. You specify rules in Subledger Accounting to use the cost allocation key flexfield instance as the segment source in the Accounting key flexfield for the chart of accounts.

Tip

As a best practice, work with your financials department to ensure that you set up your chart of account segments so that you can transfer information between your payroll and general ledger.

Payroll Costing Accounts

After creating the components that support payroll costing in the other applications, you create the costing setup information for the different payroll accounts you intend to use, such as the cost, offset, suspense, default, payroll liability, cash clearing, and cash accounts. You enter the account information and any overrides for the different levels of the cost hierarchy.

Ensure that natural account segments are the same as the natural account specified in the equivalent general ledger accounts.

Related Topics

Payroll Setup Tasks for Subledger Accounting: Explained

Payroll integrates with Oracle Fusion Subledger Accounting to streamline accounting tasks. Payroll transactions generate accounting events, such as the costing of the payroll run, payments, and partial period accruals. Subledger Accounting applies rules to the transactions and creates subledger journal entries and subledger balances for each payroll costing result. It transfers this information to Oracle Fusion General Ledger.

Payroll provides predefined data for Subledger Accounting. You create additional components in Subledger Accounting to support costing, such as accounting methods and rules.

This topic covers the following information:

  • Selecting payroll feature choices for Subledger Accounting

  • Viewing predefined data

  • Integrating payroll with Subledger Accounting

  • Performing optional tasks

Selecting Payroll Features Choices for Subledger Accounting

Before you create implementation projects, you select payroll feature choices, such as the choice to cost your payroll. The following table shows how these choices determine the tasks you can view in Subledger Accounting.

Maintain Subledger Application and Accounting Method

Yes

Yes

Maintain Subledger Accounting Method

No

Yes

Viewing Predefined Data

The Define Subledger Application and Sources task list includes predefined data, such as the definition of attribute values, process categories, event classes and event class options, sources, source assignments and accounting attribute assignments, journal line types, account derivation rules, journal lines definitions, and application accounting definitions. You can review this predefined information.

Integrating Payroll with Subledger Accounting

The Define Subledger Accounting Methods task list includes tasks you must complete to integrate Subledger Accounting with payroll.

Perform the following tasks in Subledger Accounting as part of the setup required for defining payroll costing.

Manage Account Rules

  1. Specify the segment rules for each segment of the chart of accounts flexfield structure that has a corresponding source segment in the cost allocation key flexfield.

  2. Enter conditions to use for the rules.

An option for the General Ledger accounting key flexfield allows dynamic account combination.

  • If you selected the option, when you save the account rule, Subledger Accounting automatically creates the corresponding account combinations for General Ledger.

  • If you didn't select the option, you must create General Ledgers accounts using the Manage Account Combinations task.

Manage Subledger Journal Entry Rules Sets

  1. Create journal entry rule sets for each type of event class: Costs, Payment Costs, Run Costs, and Partial Period Accrual for event types All and Reversal. Use the following templates:

    • Payroll Template Cost Rule Set

    • Payroll Template Run Cost Rule Set

    • Payroll Template Payment Cost Rule Set

    • Payroll Template Estimate Cost Rule Set

    • Payroll Template Reversal Estimate Cost Rule Set

General Questions

SAP note 173909: Info: Costs should be settled not at all or only partially

SAP note 373685: Information: Previous settlements

SAP note 197561: Information on settlement: Messages despite zero balance

SAP note 314936: Currency type in the controlling area

SAP note 119428: Controlling area: Currency type 20 or 30

SAP note 422606: Goods receipts valuation (Goods receipt reversal) for order for standard price controlled material

SAP note 367927: Differences between results analysis and settlement

SAP note 313454: Info: Default value for settlement type

KBA 1846670: KO88: KD560 'No source assignment found for cost element ...'

Performance

SAP note 38855: Information on settlement: Performance improvements

KBA 1580830: Bad performance in CO88 settlement transaction

KBA 2364341: OBJ period end closing performance optimization at a glance

Settlement of costs from previous periods

SAP note 140672: Info: Settle/reverse costs from previous periods

KBA 2165419: Error CK122 happens in T-code: CO88/KO88

Reversal of settlement

SAP note 372630: Information: Reversal for settlement

SAP note 359814: Info: Settlement Reversal Cannot Be Reversed

Settled values/amounts

SAP note 27922: Info: Settlement types PER and FUL and quantity settlement to receiver

SAP note 72429: Information: Roundings during settlement

SAP note 201445: Info: Currency translations in settlement

SAP note 158953: Settlement in parallel currency not the same as FI debit

SAP note 50249: KO88 No settlement despite amount rule

SAP note 330001: Info: Settlement by amount

SAP note 389991: Settlement list: Sender amount < > receiver amount: order with PER rule, WIP at target costs

Production orders/process orders/product cost collectors/co-production

SAP note 63339: Account determination during order settlement

SAP note 82150: Account determination order settlement in collective order

SAP note 35507: CO88: Variances are not settled – Prerequisites for settling variances

SAP note 189325: Info: Settlement rule for settling variances into CO-PA

SAP note 183250: Price differences on sales order item/project stock

SAP note 81682: Price control V for semi-finished and finished products (not recommended)

SAP note 388457: Settlement of product cost collectors as of Release 4.5

SAP 402756: Information: selection of orders in CO8A, CO8B

KBA 1853850: Error message KD557 Settlement Document too large

KBA 1866599: Error message KD529 is issued when you settle a product cost collector with T-code:KK87

KBA 2000964: Error message M8783 is issued in settlement T-code CO88

KBA 2170450: Error F5522 is issued in T-code KO88

Sales orders/WBS-elements

SAP note 111309: INFO: Transfer of quantities into CO-PA

SAP note 441994: RA: reconciliation Profitability Analysis / Financial Accounting - Which results analysis categories get settled to CO-PA?

Reorganization/Errors KO115, KO450, KO451, KD276

SAP note 76354: Information: Settlement after results analysis - Why a project cannot be closed? Error KO115 is issued!

SAP note 421710: Check report whether "Deletion flag" status can be set

SAP note 193586: Analysis program for settlement (RKA_SETTLE_TABLE _COMPARE)

SAP note 118853: Settlement: KD276 as customizable message

KBA 1983669: KO115: relation between DLFL commitment in project actual costs

KBA 1846994: Error KO115 or KO450 when setting a deletion flag on an order

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