General Ledger | Splitting Fixed and Variable Costs
Integrating the Organisation structure in the GL Account Number
Once the Advanced Organisation Structure has been enabled, employees can be linked to an organisation unit on the Position screen, which will affect their component's costing. Should an employee report to more than one organisation unit, the costing module will have to be used to apply a percentage split of the employee’s components in the General Ledger report.
Users have the option to break down the general ledger account numbers per organisation structure. In order to do so, advise a GL Key when creating or editing the organisation level.
Navigate > Configuration > Human Resources > Organisation Structure > Organisation Hierarchy Levels > GL Key
Then insert the GL Key in square brackets [] followed by the GL account number in the "GL Account" and "GL Contra Account" fields against the component names on the General Ledger Parameters screens.
Navigate > Configuration > Payroll > Payroll Config > General Ledger Parameters
When the general ledger is exported, the department GL Key code will be replaced with the gl/unit code of the various departments on the Organisation Hierarchy Units screen.
Navigate > Configuration > Human Resources > Organisation Structure > Organisation Hierarchy Units> gl/unit code
Splitting Variable Costs
Variable costs refer to components whose percentage splits vary from one run to another. In this instance, should an employee report to multiple organisation units, the Bulk Actions screen can be used to apply the percentage split for variable costs when exporting the General Ledger report.
Navigate > Bulk Actions
An extract of the General Ledger report before splitting variable costs
Important! Before updating the cost splitting via the Bulk Actions screen, establish the organisation unit the employee is linked to on their Position screen.
Navigate > Employee > Basic Information > Position > Organisation unit
Use the Payslips action type template on the Bulk Actions screen to split the costs.
Navigate > Bulk Actions
To apply costing splitting on the template,
- select the "Component Percentage Costing" option from the dropdown list under the Component Code or Description column (column B),
- then, select the relevant option from the dropdown list under the Cost Centre Code column (column E).
- Ensure to upload these cost splits on a separate template from any other specific component templates.
Once the completed template is uploaded, the cost splitting will reflect on the employee’s Edit Payslip screen.
Navigate > Employee > Payroll Processing > Edit Payslip > Other Actions > Actions > Once Off Cost Split
An extract of the General Ledger report after splitting variable costs
Important!
- The Bulk Actions template should be uploaded after payroll has been finalised and before the General Ledger report is exported.
- Only the organisation units not selected on the Position screen should be added in the template to be uploaded.
- Should the percentage split be changed on the Edit Payslip screen, the system will still apply a validation check to ensure the total split adds to 100%,
The General Ledger report will also be updated to reflect this change.
Splitting Fixed Costs
Fixed costs refer to components whose percentage splits remain unchanged from each run to another. In this instance, should an employee report to multiple organisation units, the employee's Recurring Costing Split screen can be used to apply the percentage split for fixed costs when exporting the General Ledger report.
An extract of the General Ledger report before fixed variable costs
Navigate > Employee > Costing > Recurring Costing
Field explanations
Field | Explanation |
effective date | Indicate the date from when the percentage split should be applicable. The system will not prorate the percentages if the effective date is mid-month. |
Employee Organisation Unit | Select the relevant organisation unit. |
Percentage | Specify the percentages. The total should add to 100%. |
Click on the Add icon to add as many organisation units as necessary. | |
Recurring Costing Split Dates | This grid stores all the records of cost centre split items. |
When exporting the General Ledger report, the report will apply the percentages as processed on the Recurring Costing Split screen.
An extract of the General Ledger report after splitting fixed costs
Important!
- Should the employee’s percentage split differ for one pay run from the percentage split indicated on the Recurring Costing screen, use the Bulk Actions template to correct.
The percentages indicated on the Employee Recurring Costing Split screen will apply again from the next pay period going forward.
- Should the user first upload the percentage split in a template and then apply a different percentage split on the Recurring Costing Split screen during the same pay period, the percentages specified in the Bulk Actions template will apply.
The percentages indicated on the Employee Recurring Costing screen will apply again from the next pay period going forward.
Comments
- The MS Excel Spreadsheet should be uploaded only after the payroll has been finalised before the General Entry Report is exported.
- The total of the employee’s Costing Split must always add to 100%.
- Applying percentages on the Employee Recurring Costing Screen, will not create the link on the Employee Edit Payslip Screen to overwrite the percentage split.
PaySpace Edition
This feature is available on all payroll editions.
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