Costing Allocations

It is important to note that amending a costing in one section will not automatically affect the costing of the other three sections.

Using The Costing Allocation Tab:

In this screen you can split the costing for payments between departments. The method you use depends on the costing level of the selected employee.

The Costing Levels

Level 1: (payroll  and HR3pay Lite) In the employee file, costings can only be allocated to the employee's home department. However, you can apply unlimited costing splits in the payrun.

Level 2: (payroll only) Select this option then apply a permanent costing split on the standard pay items tab. Level 2 allows you to apply a common costing split to all pay items, e.g. all pay items are split 50/50 between two departments.

Level 3: (payroll only) Select this option then apply a permanent costing split on the standard pay items tab. Level 3 allows you to apply a different costing split to each pay item, e.g. ordinary time is split 50/50 but overtime is split 75/25.

 

If you are using payroll Lite version, only level 1 costing is available.

Field Explanation
Department The department to which you want to allocate the percentage of the costing split
% Split The percentage of the cost that will be allocated to that department
Hrs/Units Shows the hours/ units that will be allocated to that department. This is calculated automatically
Job Code The job code for this particular costing split will be available if you have switched on Show Job Codes in Payrun Costing in the Preferences tab.
Amount A dollar amount is calculated by the system
On Cost If an On Cost value has been entered for the department or the employee, the system will automatically calculate a dollar amount in this field. On cost is an estimated or actual cost (in dollars) which is additional to the value of the labour cost, such as a workcover premium, or telephone expenses.
Total The costing allocation totals at the bottom of the screen are used to ensure that the costing split is complete. If the figures entered do not total 100%, this section will be selected in red. The system will auto-correct any over-allocation by deducting the appropriate amount from the last entry in the list.

 

ClosedLevel 1 Costing:

By default, Level 1 employees are costed to their home department as displayed in the Pay Items section of the payrun. There are two ways to change the costing allocation of Level 1 employees:

  • Applying 100% of the costing to a different department
  • Splitting the costing between two or more departments.

To apply 100% of the costing to a different department:

  1. Click on the drop-down arrow in the Departments field.
    A list of the available departments will appear.
  2. Select the department to which you want to allocate the cost.
    100% of the costing will now be applied to the selected department.

To split the costing between two or more departments:

  1. On the toolbar click Options| Multi-costing.
    This will enable the Costing Allocations section.
  2. In the Pay Items section, select the Pay Item that you want to split
  3. Now you can allocate either the %split or the Hours/Units for the first department
  4. Click the down arrow on your keyboard to start a new line
  5. Select the department that you want to split the cost with from the drop-down list
  6. Allocate the %split or the Hours/Units to the department.
  7. Continue to add department lines until you have entered all the splits required.
  8. Click Apply Changes.

The system will attempt to auto-balance the costing. If you have over-allocated the costings, the system will reduce the allocations from the bottom line up. So if you enter 50% then 60%, the system will automatically reduce the last line by 10% to correct the over-allocation.

ClosedLevel 2 and 3 Costing:

If this is a Level 2 or 3 costing employee, a costing split will already have been imported from the employee's standard pay items. If required, you can override the default split in this section. The system will auto-correct any under- or over-allocation starting with the last item on the list.

When amending a Level 2 or 3 split in the payrun, only the selected pay item is amended.
For example, amending the costing split for ordinary time will NOT automatically update the split for other payments, super, leave and so on. These items must be adjusted separately.

To amend the costing split for a level 2 or 3 costing employee:

  1. Select the Pay Item in the upper section of the window.
  2. In the Costing Allocations section, amend the costing split by selecting a new department, or changing the % or $ amounts.