This help article discusses how to define a cost object for monthly salary employees in payroll. The article goes through the use of default cost objects in employee basic information and the utilization of recorded hours as a basis for the payslip allocation curve.
Table of contents
Cost object for monthly salary employees
If a default cost object is defined in the employee's basic information and working hours are not recorded, the payslip allocation curve will be based on it, and thus the cost object will reach the voucher.
- If you want to use recorded hours as a basis for the allocation curve, set an hourly rate for monthly salary employees in the pay basis.
- Set the value by selecting Pay > Personnel > Pay basis management > Hourly pay.
- If the intention is to use the default cost object in the employee's basic information, do not approve recorded working hours for payroll.
If a default cost object is defined in the employee's basic information and working time entries are made in addition, the program offers the default cost object as a precompleted cost object in the working hours entry.
The allocations of working time entries included in the payslip override the default cost object in the employee's basic information. Thus, the allocation curve is made based on the cost objects of the working time entries, not based on the default cost object setting in the employee's basic information. If working time entries are made and the allocation is left empty, the allocation curve will also remain empty.
Note that whenever you use working time entries as a basis for the allocation curve, set "Cost accounting basis" in the settings of the desired record types to be included in the calculation, along with a functional formula for the record type (image below).
Leave "Pay basis" set to "No" for monthly salary employees:
In this case, the "Allocation curve" tab on the payslip will form cost centers with percentage distribution according to the recorded working hours, even though they do not generate payable salary on the payslip. If the formula used is as shown in the image, ensure that monthly salary employees also have an hourly rate defined in the employee's pay basis under Pay > Personnel > Pay basis management > Hourly pay.
Frequently asked questions
Why doesn't an allocation curve form for a monthly salary employee according to the employee's default cost object?
Check that working time entries are not included in the employee's payslip. If working time entries are included in the monthly salary employee's payslip and the record type settings have the option "Cost object source: Yes", the working time entry cost object information overrides the employee's default cost object. See the section in the help article "Cost center for monthly salary employee".
Keywords
Cost object, Monthly salary employee, Allocation curve, Default cost object, Working time entries, Recorded hours, Hourly pay, Pay basis, Cost accounting basis
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