E-Business Suite Labor Costing

HRSD

Kassandra Pagan, Accounting Manager May 3, 2019

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Hampton Roads Sanitation District

*Regional wastewater treatment agency that serves 18 counties and cities. * Owns and operates 16 wastewater treatment plants in Hampton Roads area.

* A Political Subdivision of the Commonwealth of Virginia.

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HRSD & E-Business Suite

iSupplier Procurement

General Ledger

Live April 2015 Accounts Payable

Grants

Live October 2015

Cash Management

Payroll

Human Resources

iExpense

• Oracle Time and Labor (OTL) • Employees are required to submit Timecards(TC) • Segments on HRSD’s Timecard:

– Hours Type – Project & Task – Work Order (WO) – Function – Activity

Labor Costing

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• Hours Type – Employees pick Hours Type from a dropdown list.

Only Hours Type that pertains to the employee’s assignment and grade level are available in the dropdown For example, HRSD switch to PTO from AL & SL but

grandfathered employees. The dropdown list will only reflect the leave available to that employee.

Examples of Hours Type: » Actual Hours Worked » Paid Time Off (PTO) » Holiday

Hours Type

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• Project & Task – Tracks time related to HRSD’s Capital Improvement Projects – Search Options for projects in Grants module

• Work Order (WO) – Tracks time related to work orders in HRSD’s Asset

management system – Search Options from HRSD’s CMMS WO list

• Function – Tracks time based on an HRSD function (ie – CAFR) – Search Option from General Ledger Account Segment

• Activity – Tracks time related to an activity (ie – Supervision) – Dropdown list based on Senior Management request

Costing Segments

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Labor Costing

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• The Payroll Module has two Main Goals: 1. Correctly process payroll for all employees 2. Provided payroll costing data for other EBS

modules (mainly the General Ledger) and report writing applications attached to EBS.

• To accomplish these two goals, Elements are set up in the PR module.

Payroll Module

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Several steps are required to set up an element in EBS but there are four important attributes related to labor costing:

1. Classification 2. Processing Type 3. Valuation 4. Costing

Payroll Element

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Element Classifications: – EBS has a wide range of classifications that can

be assigned to an element: Earnings Elements - Used to calculate Gross earnings

Earnings (ex: Wages) Supplemental Earnings (ex: Wellness Incentive)

Deduction Elements - Used to calculate net pay Involuntary Deduction – (ex: bankruptcy) Pre-tax Deduction (ex: FSA contribution)

Information Elements – Used to track Leave balances PTO Accruals (ex: Annual Leave) Information – (ex: AL carryforward loss adj.)

Employer Elements - Used to calculate employer related PR expenses Employer Liabilities - (ex: FICA ER)

Element Classification

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Element Processing Types: – Recurring – elements identified as requirements

for every pay period. Examples: Wages, taxes, retirement contributions, etc.

– Non-recurring – ad hoc input by the payroll technician for an element that is not a recurring earning or deduction element Can be set up to be processed on one or more pay

periods depending on effective dates assigned to the element entry.

Examples: Tax Levy, Safety Award, etc.

Element Processing Type

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Element Entry

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Element Valuation – Valuation methods:

Fast Formulas, Amounts input by Payroll Technician, and; Amounts input by Employee.

Element Costing – Costable types:

Not costed – not transferred to the GL, Costed – transfer to GL based on the department the

employee is assigned, Fixed Costed – transfer to GL with the department

predefined, and; Distributed – transfer to GL based on established

Distribution Sets.

Elements Valuation & Costing

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Costed Element

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Must check the list to Link the element to all payrolls

Fixed Costed Element

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• Costed Element – transfer to GL based on the department the employee is assigned.

• Two ways to assign an employee to a department: 1. Costing by People The employee record governs the department.

Employee Department

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2. Costing by Organization – The employee record governs the Organization. – The Organization record governs the department

costing information.

Employee Department

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• Elements are created in PR • Employees submit TC in OTL • OTL is transferred to PR • The OTL data is converted into elements

within PR • PR runs processes to value all Elements

assigned in that pay period and create a Statement of Earnings for each employee

• A series of processes are run to finalize PR. These processes include Costing, NACHA, and Costing of Payment, and Transfer to GL.

Overview

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JE Import

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Run Options : Check both Post Errors to

Suspense and Create Summary Journals

Payroll

If PR has created a JE it will be available in the Dropdown list

• General Ledger – Monthly summary reporting by department by

object and function code. – Comparison to budget – Trial Balance

• Business Intelligence reports – Cost Center Over View (GL) – Labor Utilization Report (PR) – Activity Labor Costing (PR) – Project Labor Costing (PR)

Labor Costing

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Cost Center Overview

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Labor Utilization Report

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Activity Labor Costing

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Project Labor Costing

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• Avoid issues: – No Costing Set up on an Organization

set up a suspense account on the GL to catch any coding issues.

Keep in mind – if costing is incorrect in PR, you can correct it in GL but PR will remain incorrect.

– No banking set up for NACHA Payment Use a Payroll clearing account to identify when an issue

exists. Compare Net Pay and NACHA file for variances.

– Use Request Sets when running a series of reports

Lessons Learned

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