Distribute Labor Amounts

Using Labor Schedules

Early Adopter Information

Project Portfolio Management Cloud

April 28, 2020 | Version 1.0

Copyright © 2020, Oracle and/or its affiliates
Confidential – Public
PURPOSE STATEMENT
This document provides an overview of features and enhancements included in release 20B. It is intended solely to help you assess the
business benefits of upgrading to 20B and to plan your I.T. projects.

DISCLAIMER
This document in any form, software or printed matter, contains proprietary information that is the exclusive property of Oracle.
Your access to and use of this confidential material is subject to the terms and conditions of your Oracle software license and service
agreement, which has been executed and with which you agree to comply. This document and information contained herein may not
be disclosed, copied, reproduced or distributed to anyone outside Oracle without prior written consent of Oracle. This document is
not part of your license agreement nor can it be incorporated into any contractual agreement with Oracle or its subsidiaries or
affiliates.
This document is for informational purposes only and is intended solely to assist you in planning for the implementation and upgrade
of the product features described. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon
in making purchasing decisions. The development, release, and timing of any features or functionality described in this document
remains at the sole discretion of Oracle.

Due to the nature of the product architecture, it may not be possible to safely include all features described in this document without
risking significant destabilization of the code.

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TABLE OF CONTENTS
Purpose Statement 2

Disclaimer 2
Distribute Payroll Amounts Using Labor Schedules 4
Overview 4
Labor Schedules 4
Manage Labor Schedules 6
Import & Distribute Payroll 7
Processing Logic 7
Process Parameters 8
Manage Labor Costs 9
Labor Distribution Costs Management Matrix 10
Manage Labor Costs - Resolve Errors 11
Manage Labor Costs – Make Adjustments 11
Retrieving data for Analysis 11

Accounting Objects Specific to Labor Distribution 12

Overview 12
Initial Setup Option 13
Accounting Objects Seeded for Use with Labor Distribution 13
Journal Line Rules 13
Mapping Sets 14
Account Rules 15
Journal Entry Rule Set 16
Manage Accounting Methods 16
Example of Accounting Setup for Payroll Clearing 17
Overview 17
Summary Flow 17

Security Administration Specific to Labor Distribution 19

Roles 19
Preparing the Roles for Use 19
User Setup 21

Payroll Element Setup Instructions for Non-Oracle Payroll Customers 23

Overview 23
Create and Maintain Elements 23
Loading Elements from Third Party Application 24

File Based Data Interface (FBDI) for Labor Distribution 24

Import Payroll FBDI 24
Assignment Labor Schedules FBDI 24

Assumptions / Pre-Requisites 24
Frequently Asked Questions 26
Does Labor Distribution replace Timecards? 26
Non-Project Labor Costs not being picked up in Create Accounting? 26
Labor Distribution Labor Costs not displaying in Manage Unprocessed Costs? 26
User with Labor Distribution Administrator role is not seeing the right list of people based on the
security setup? 26

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DISTRIBUTE PAYROLL AMOUNTS USING LABOR SCHEDULES
The ‘Distribute Payroll Amounts Using Labor Schedules’ feature is commonly referred to as ‘Labor Distribution.’

Labor distribution capabilities provide for a rule-based distribution of payroll costs to project / award or general ledger accounts. The
core component of the feature is the Labor Schedule. These labor schedules specify a time period and percentage to distribute a
person’s labor cost to a project / award or general ledger account combination. Payroll information from any source system is
imported and distributed efficiently via the labor schedules.

This independent and efficient, percentage-based distribution of high-volume labor costs reduces the effort on individual project
resources and administrators.
This feature is available for both sponsored and non-sponsored projects.

Overview
The image below is an illustration of the scope of the Labor Distribution business processes:

Manage Import & Manage

Execute
Labor Distribute Labor Report
Payroll *
Schedules Payroll Costs

Labor Schedules
Labor schedules are the core object to the entire process and have three components: (1) Labor Schedule Header, (2) Labor Schedule
Version, and (3) Labor Schedule Version Distribution Rules. The labor schedule headers define the highest level of a labor schedule
and relate to the “type” by ensuring the attributes needed required. The attributes are used to evaluate the payroll cost to determine
the applicable version and rules to distribute the cost. As more types of labor schedules are added, a hierarchy will be imposed. There
are a few key business rules at each level:

1. Headers
a. Define the type of labor schedule
b. The types available are:

i. Person / Assignment
2. Versions

a. Only one Version can be in a status of “Active” for any given day
3. Distribution Rules

a. Total of all Distribution Rules can be less then 100% but cannot be greater
b. Each Distribution Rule percentage must be greater than 0 and less than or equal to 100%

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The image below illustrates a set of Labor Schedules and their components.
Distribution Rule
Version
P1-T1-A1 (50%)
Header Version 1 : July 1st 2019 - June
30th 2020 : ACTIVE
GL: 000-001-0400 (50%)
Larry Scanlon - Analyst

Type Version 2 : July 1st 2020 - June

30th 2021 : NEW
GL: 000-001-0510 (100%)

P4-T2-A4 (50%)
Version 1 : July 1st 2019 - June

Assignment
30th 2020 : INACTIVE
GL: 000-001-0400 (50%)

P1-T1-A1 (50%)
Hector Campos - Project
Manager Version 2 : July 1st 2019 - June
30th 2020 : ACTIVE
GL: 000-001-0400 (50%)

Version 3 : July 1st 2020 - June

GL: 000-001-0510 (100%)
30th 2021 : ACTIVE

Hector Campos - Director No Version

Element (Roadmap)

P1-T1-A1 (50%)
Version 1 : July 1st 2019 - June
30th 2020 : ACTIVE
GL: 000-001-0400 (50%)
Larry Scanlon - Analyst -
Parking

Version 2 : July 1st 2020 - June

GL: 000-001-0510 (100%)
30th 2021 : ACTIVE

There are two Labor Schedule Types illustrated in the image above – (1) Assignment and (2) Element. The Element type is on the
roadmap to enhance the labor distribution feature and is illustrated for reference at this time. Enabling labor schedules at an
“Assignment / Element” level will allow for different distribution rules for a specific pay element. Illustrated in the image, is that
Larry Scanlon would have a specific labor schedule for any “Parking” payroll costs, defined by a different pay element on the
imported payroll cost record(s).

The table below describes the use of labor schedule headers for a person and their assignments. The Import Payroll Costs process
evaluates the cost records matching the attribute combination of person and assignment to labor schedule versions and distribution
rules that apply.

Header Version Distribution Explanation of Use

Rules
(Assignment)

Larry Scanlon Version 1 1. Project1- This version is in an ACTIVE status and will be used in the Import
(Analyst) Task1- Payroll Costs process to distribute applicable payroll costs.
Start = July 1st,
Award1
2019 Payroll costs imported that match Larry Scanlon and his assignment
(50%)
of Analyst with pay period start and end dates between July 1st, 2019
End = June 30th,
2. GL: 000- and June 30th, 2020 will be distributed as defined by the rules.
2020
001-0400
Status = ACTIVE (50%)

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 Header Version Distribution Explanation of Use
Rules
(Assignment)

Larry Scanlon Version 2 1. GL: 000- This version is in a NEW status and will NOT be used in the Import
(Analyst) 001-0510 Payroll Costs process to distribute applicable payroll costs.
Start = July 1st,
(100%)
2020 Payroll costs imported that match Larry Scanlon and his assignment
of Analyst and the pay period start and end dates are between July
End = June 30th,
1st, 2020 and June 30th, 2021 will be rejected.
2021

Status = NEW

Hector Campos Version 1 1. Project4- This version is in an INACTIVE status and will NOT be used in the
(Project Task2- Import Payroll Costs process to distribute applicable payroll costs.
Start = July 1st,
Manager) Award4
2019 Payroll costs imported that match Hector Campos and his assignment
(50%)
of Project Manager and the pay period start and end dates are
End = June 30th,
2. GL: 000- between July 1st, 2020 and June 30th, 2021 will be rejected.
2020
001-0400
Status = INACTIVE (50%)

Hector Campos Version 2 1. Project1- This version is in an ACTIVE status and will be used in the Import
(Project Task1- Payroll Costs process to distribute applicable payroll costs.
Start = July 1st,
Manager) Award1
2019 Payroll costs imported that match Hector Campos and his assignment
(50%)
of Project Manager with pay period start and end dates between July
End = June 30th,
2. GL: 000- 1st, 2019 and June 30th, 2020 will be distributed as defined by the
2020
001-0400 rules.
Status = ACTIVE (50%)

Hector Campos Version 3 1. GL: 000- This version is in an ACTIVE status and will be used in the Import
(Project 001-0510 Payroll Costs process to distribute applicable payroll costs.
Start = July 1st,
Manager) (100%)
2020 Payroll costs imported that match Hector Campos and his assignment
of Project Manager with pay period start and end dates between July
End = June 30th,
1st, 2020 and June 30th, 2021 will be distributed as defined by the
2021
rules.
Status = ACTIVE

Hector Campos NONE EXIST There is no Labor Schedule for this person and assignment to be used
(Director) in the Import Payroll Costs process to distribute applicable payroll
costs.

Payroll costs imported that match Hector Campos and his assignment
of Project Manager will be rejected.

Manage Labor Schedules

Labor Schedules can be created and maintained using the Labor Distribution work area and/or by using the file-based data interface
(FBDI) process.
Procedures for users with the role Labor Distribution Administrator enabling the Labor Distribution menu option:

1. Find Person page provides access to the people that the users data security allows them to administer.
2. Once a person and assignment combination are selected, the user will navigate to the Manage Labor Schedules page.
a. This page is in the context of a person and assignment.

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 b. If the person chosen has multiple assignments, the user can switch between assignments by using the drop-down
menu in the page heading section.

c. Once a labor schedule version is saved, the user can change the Status by double clicking the value.
Additional considerations for Status:

1. Only one Version can be Active for any day.

2. Can change from Inactive to Active and Active to Inactive.
3. Cannot change an Active or Inactive labor schedule to New.

Labor Schedules can be interfaced from an external system by using the File-Based Data Interface for Labor Schedules. See
Assignment Labor Schedules FBDI.

Import & Distribute Payroll

Labor distribution uses a specific document type called “Labor Distribution” that is seeded within Oracle Fusion Projects source. This
allows for specific setup on these types of transactions like allow / forbid adjustments.

The role of Labor Distribution Accountant is required to complete the interface and import processes.
1. Initiate the importing and distribute process by loading the transactions to the interface table.

a. For more information on the interface process, see the Import Payroll Costs section of the File Based Data Import
for Oracle Project Portfolio Management Cloud guide.
2. After the interface table is loaded, the Import Payroll Costs process will be executed. The Import Payroll Costs process
imports from the interface table, validates and processes the transactions to create project cost distributions. The exceptions
for invalid transactions are tracked in the Manage Labor Costs page and in the Import Payroll Costs Report. Fix the errors
and resubmit the process.
a. For more information on this topic, see Manage Labor Costs section below.

Processing Logic
The pay period defined on the payroll cost must be able to be fully distributed by one or the combination of more than one Active
labor schedules start and end dates, as well as the Project, Task, or Award start and end dates. The persons assignment start date or
end date are used if needed to calculate a daily rate. For Example, if the person assignment is terminated 5 days into a 10 day pay
period, the daily rate will be calculated for 5 days only and the processing end date will be the assignment end date.
Key attributes to the processing are:
1. Status of Labor Schedule
a. New
i. Will NOT be used in Import Payroll Costs

b. Active
i. Will be used in Import Payroll Costs

ii. The start date and end date will be matched to the Pay Period Start and End Dates of the payroll cost to
see if it covers the span or another Active labor schedule in combination covers the entire pay period.
c. Inactive

i. Will NOT be used in Import Payroll Costs processing

ii. Can be set back to Active at any time.
2. Pay Period Start and End Dates

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 a. Must be able to be fully distributed based on one or more labor schedules start and end dates, and any project, task,
or award start and end dates.

b. Net working days between Pay Period start and end date is used to calculate the daily rate
i. Net working days are weekdays only

ii. Example:
1. Start Date = Monday April 13th, 2020
2. End Date = Friday April 24th, 2020

3. Net working days = 10 days

3. Project, Task, and / or Award start and end dates

a. Used in conjunction with the start and end date of the labor schedules to ensure full distribution of cost.

Expenditure Item Date Calculation

The expenditure item date is calculated based on the earliest date of the processing logic for the cost. The value will normally be the
pay period start date but could be the assignment start date if the assignment starts after the pay period start and / or the time period
of the cost is spread across two labor schedules. To illustrate, see the example below of the cost spreading across two labor schedules:

Labor Schedules for Mary Marshall

LABOR SCHEDULE START END RULE PERCENTAGE

NAME

Version 1 January 1, 2019 September 15, 2019 DOD Project 100%

Version 2 September 16, 2019 … NSF Project 100%

Payroll Cost

PAY PERIOD START PAY PERIOD END PERSON AMOUNT

September 1, 2019 September 30, 2019 Mary Marshall $1,000

Expenditures

PROJECT EXPENDITURE ITEM AMOUNT PROCESSING LOGIC

DATE

DOD Project September 1, 2019 $476.19 10 Net-working days at daily rate of $47.62

NSF Project September 16, 2019 $523.81 11 Net-working days at daily rate of $47.62

Process Parameters
The Import Payroll Costs parameters are:
1. Business Unit

a. Business Unit of the Person / Assignment associated to the payroll cost

2. Process Mode

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 a. All
i. Interface records in a status of Error or New will be processed

b. Error
i. Interface records that failed the import process and based on an attribute of the labor schedule, such as
failing funds check on the project being distributed
c. New
i. Interface records that have not been processed at all

3. Person (Error Mode Only)

a. Choose a person that has records in the interface table in an error status

4. Assignment (Error Mode Only)

a. Choose a person assignment combination that has records in the interface table in an error status
5. Batch Name
a. Choose a batch name that exists in the interface table to import and distribute the costs
6. Period Start Date

a. Define a pay period start date to process all records in the interface table that match that date
7. Period End Date

a. Define a pay period end date to process all records in the interface table that match that date
The Import Payroll Costs Report is available to be run independently of the Import Payroll Costs process. This is to be used in case of
an error that causes the interface records to get into an unexpected status. This process will rerun based on the prior Process ID
provided and clean up the interface records if needed.

Import Payroll Costs Key Attributes

The required attributes of a payroll cost record are defined in the FBDI excel template. They are referenced here for clarity.

1. Person and Assignment

a. The most important attributes are the person and assignment
b. These attributes will be validated during the import process and if not found the payroll record will be rejected

2. Pay Element
a. The initial release of the labor distribution feature allows for Person / Assignment labor schedules. In
development is the Person / Assignment / Element level to allow for a specific labor distribution for certain
elements.
b. It is recommended to implement into your business practices the Payroll Element HCM setup task. This attribute
is important to the integration with Payroll business flows and leverages the Oracle HCM Payroll Element
business object to ensure effectiveness and efficiency of use.

i. It is not required to set this up until Person / Element / Assignment enhancement is complete, but
strongly recommended to reduce the impact of change when you want to leverage this enhancement.
ii. See “Payroll Element Setup Instructions for Non-Oracle Payroll Customers” section later in the
document for more information.

Manage Labor Costs

The Manage Labor Costs page allows labor distribution accountants to search and manage labor costs and their distributions. Labor
costs generated from labor distribution are available in the project Costs work area once they have successfully been distributed.
There are controls in place on these costs in the project Costs work area to ensure accuracy of the data. See the Labor Distribution
Project Costs Management Matrix section for an explanation of the actions that can be taken.

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The Manage Labor Costs page’s primary purpose is to analyze errors resulting from the Import Labor Costs process. The static
analytical graph at the top of the page allows for a quick reference to the latest 3 pay periods that have errors in distributions and the
total amount and count of errors. This page is useful to find the root cause of one or more errors by using the search filters.
After the cause has been resolved (i.e. increased the budget on a project), the labor cost can be selected for re-processing and use the
Process Costs button to reprocess one or more selected errors. The Process Costs option can also be used to adjust a successfully
processed distribution. See the information below for more information.
Page Components:

1. Analytic
a. The analytic is a static graph, that reflects the count and amount of total errors as well as the last three pay periods.

2. Filters
a. Use one or more filter options to analyze data.
b. Recommended to create a Saved Search that will be applied when the page opens.

3. Key Attributes
a. Transaction Number

i. The Transaction Number on the Distribution Rule record can be used to look up the expenditure and see
the resulting accounting that occurred

b. Labor Schedule Attributes

i. All the attributes from the labor schedule version and distribution rule that created the expenditure are
available for use in analysis

c. Differential
i. The Differential attribute identifies if the distribution was generated to make up the difference to total
100%
ii. The value of “-1” is stored in the Distribution Line number attribute to differentiate this from lines that
were defined on the labor schedule

Labor Distribution Costs Management Matrix

The table below defines what actions can occur on the labor distribution generated labor costs.

Labor Cost (Status) Manage Labor Costs page Manage Project Costs page Period Close Exceptions
Report
Project Cost (Error) • View errors • Not available • Not available
• Process Cost
Non-Project Cost (Error) • View errors • Not available • Not available
• Process Cost
Project Cost (Success) • View results • View project cost details • Pending transaction
• Process Cost (reversal and • *Adjustments available until Create
re-import of parent Labor except for: Accounting process
Cost) • Split complete for these
• Transfer project costs
• Split and
Transfer
• Reverse
Non-Project Cost (Success) • View results • Not available • Not available
• Process Cost – reversal and (Available in Sub-Ledger
re-import of parent Labor Accounting work area)
Cost
* These adjustments are not allowed in Manage Project Costs because the source labor costs could be redistributed in Labor Distribution causing the
costs to get reversed in different sources. Resolving issues of labor costs at the source is recommended.

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Manage Labor Costs - Resolve Errors
Labor distribution accountants can manage the imported and distributed costs in the Manage Labor Costs page in the Labor
Distribution work area. You can evaluate errors and perform root cause analysis to determine the appropriate resolution. After
resolving the cause, select one or more records and process the costs. For larger volume of errors, fix the root cause and run the
Import Payroll Costs process with identified parameters.

Manage Labor Costs – Make Adjustments

You can adjust labor costs that succeed in distribution. Create the new labor schedules and select one or more records and process the
costs again, generating the reversing entries and new distributions.

Retrieving data for Analysis

Until the Labor Distribution Oracle Transactional Business Intelligence (OTBI) subject areas are available, there is a flexible excel
based utility that can be leveraged to retrieve data. As early adopters, you will benefit from this tool in your design and testing phases
of implementation. Leveraging the labor distribution related REST services and this tool will provide an additional flexibility to
evaluate data. The four REST services are defined in more detail in the “REST API for Oracle Project Portfolio Management Cloud”
documentation here - https://docs.oracle.com/en/cloud/saas/project-management/20b/fapap/index.html.
The four REST Services are:

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 1. Labor Schedule Cost Distributions
2. Labor Schedule Costs
3. Labor Schedule Costs Total Errors
4. Person Assignment Labor Schedules
The “Oracle Visual Builder Add-in for Excel Downloads” is a very useful tool in addition to the manage labor costs and manage labor
schedules pages. This tool allows for larger volumes of data to be retrieved and analyzed. You can download and learn how to use
the tool here - https://www.oracle.com/downloads/cloud/visual-builder-addin-downloads.html.

The image below illustrates retrieving all the costs from a demonstration environment. It provides the data viewable on the pages
and more.

ACCOUNTING OBJECTS SPECIFIC TO LABOR DISTRIBUTION

Overview
For Labor Distribution, there are multiple seeded accounting objects.
There is a new Event Class of Non-Project Labor Costs created for this feature. To incorporate the new event class into the Project
Costing subledger, run the Update Subledger Application Options. Background on this process can be found in the Implementation
Guide “Oracle Financials Cloud Implementing Subledger Accounting”. The information below is an excerpt:

1. Manage Subledger Accounting Options

• This task is accessed from the Setup and Maintenance work area. The page is displayed in the context of a primary
or secondary ledger. All registered subledger applications are displayed. If you created additional accounting event
classes after initial ledger setup, run the Update Subledger Application Options process to incorporate these event
classes.

There is a seeded Subledger Journal Entry Rule Set named Non-Project Labor cost. This is to account for the two types of non-project
costs generated from the labor distribution Import Payroll Costs process:

1. Non-project labor costs specified on the labor schedule:

a. GL Account specified labor schedule distribution rule
b. Journal Line Rule = Imported Non-Project Labor Cost

2. Non-project labor costs generated to complete the differential between the labor schedule distributions total and 100%,
ensuring full distribution of the payroll cost:

a. If an Active Version has Distribution Rules that do not total 100%, the Import Labor Costs process will create a
cost distribution to equal the differential.
b. Journal Line Rules = Non-Project Labor Cost, Non-Project Labor Cost Clearing, Non-Project Labor Cost Reversal,
and Non-Project Labor Cost Clearing Reversal

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Initial Setup Option
An efficient setup of accounting for this feature is provided for reference below, along with the full explanation of all seeded
accounting objects for deciding on other implementations to meet business needs.
To simply add the new Event Class of Non-Project Labor Costs to your Sub-ledger Accounting Method using the seeded Rule set
Non-Project Labor Cost, you will need to:
1. Manage Mapping Sets to set the account values for the credit and debit of the Journal Rules

2. Add this Rule Set (or make a copy of it and add) to your subledger accounting method in the Manage Accounting Methods
for Project Costing.
Note: A best practice is to make a copy of the seeded Journal Entry Rule Set to maintain the standard seeded rule set for reference.
An overview of the seeded objects and an example for payroll clearing are provided below.

Accounting Objects Seeded for Use with Labor Distribution

Journal Line Rules

There are five (5) new Journal Line Rules for event class “Non-Project Labor Cost”.
The labor distribution feature uses existing Labor Cost rule for the project labor costs that get passed thought the Import Labor Costs
job.

JOURNAL LINE RULE DESCRIPTION

NAME

Imported Non-Project Journal line for non-project related labor cost when account is defined on the Labor Schedule
Labor Cost (debit) Distribution Rule.

Non-Project Labor Cost Journal line for non-project related labor cost when account is not defined.
(debit)

These are the Differential distributions (i.e. "Cost Account"."Natural Account Segment" Is null) that
are generated if the total Labor Schedule Distribution Rules are less the 100%. This will fully
distribute the imported payroll cost.

Non-Project Labor Cost This rule will be used to create the credit side of the accounting for both the Imported Non-Project
Clearing (credit) Labor Cost and the Non-Project Labor Cost debits.

Journal line for non-project related labor cost clearing when account is not defined.

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 Non-Project Labor Cost Reversal Journal line for non-project related labor cost clearing.
Clearing Reversal
(credit)

Non-Project Labor Cost Reversal Journal line for non-project related labor cost.
Reversal (debit)

Why 5 Instead of 6 Journal Line Rules?

The business flow of these labor distribution costs (Imported Non-Project Labor Cost and Non-Project Labor Cost) to the general
ledger is expected to use the same payroll clearing account.

Mapping Sets
2 new Mapping Sets.

The Imported Non-Project Labor Cost Journal Line Rule does NOT need a mapping set, because it will be an account combination
passed directly from the labor schedule version distribution.
Example:
1. Non-Project Labor Cost Account

a. Map the Chart of Accounts

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 b. Mappings to a specified account code combination

2. Non-Project Labor Cost Clearing Account

a. Example below of defining an account for the Non-Project Labor Cost Clearing Mapping Set.
b. For efficiency, this would likely be the same account that you define for the payroll costs that are sent to distribute
through labor schedules (see Example Step 4 in Table 6 in section Summary Flow)

c.

Account Rules
3 new Account Rules.

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The Imported Non-Project Labor Cost Account uses the Cost Account source to capture the account.

The other two rules are setup to use the Mapping Sets defined above of the same name.

Journal Entry Rule Set

We have also seeded a Journal Entry Rule Set that specifies how to process the debit and credit line types specific to all 5 of the new
Journal Entry Rules.

Manage Accounting Methods

The Manage Accounting Methods task is documented here for reference and is an accounting setup step that is required to be done by
customers. The step is to add the Journal Entry Rule Set to the necessary sub-ledger accounting method. The example below displays
an accounting method called “Vision City Accrual with Encumbrance Accounting”.

REMINDER - After adding the Journal Entry Rule Set to the sub-ledger accounting method, be sure to run the process Activate
Subledger Journal Entry Rule Set Assignments.

1. Search for the Accounting Method

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 a.
Add the Journal Entry Rule Set Assignment to the Accounting Method

b.

Example of Accounting Setup for Payroll Clearing

Overview
A common accounting flow is to send the payroll transactions that are sent to Projects for Labor Distribution, to a clearing account.
These transactions will then be credited after they flow through the Import Labor Costs process. Managing this clearing account
ensures the payroll costs are processed successfully through to the general ledger and are properly accounted.

Summary Flow
In this example, payroll is run and costed for two employees. These payroll costs are imported and distributed to projects/awards and
the general ledger via subledger accounting processes.
1. Two employees are on the monthly payroll at Oracle University. They are John Smith with a monthly salary of $2,500 and
Mary Marshall with a monthly salary of $3,600. The one element is Regular Salary. Total payroll costs are $6,000 for the
current month. These costs are processed and costed from Payroll to General Ledger as shown in Table 1 below.

Table 1
Account Total Payroll Costs Debit/Credit

Payroll Clearing (00.000.1500) $6,100 Debit

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 Account Total Payroll Costs Debit/Credit
Payroll Liability (00.000.2100) $6,100 Credit

2. Labor schedules are established at the employee assignment level for each employee.

Table 2
John Smith – Labor Schedule Distribution Rule Distribution Rule Percent

GL Account 10.200.6010 20%

DOD Project 80%

Table 3
Mary Marshall – Labor Schedule Distribution Rule Distribution Rule Percent

GL Account 10.300.6010 40%

NSF Project 60%

3. The Import Payroll Costs process in Projects is run and creates the project and non-project costs that can be reviewed in the
Manage Labor Costs pages.

Table 4
Employee Distribution Rule Distribution Amount

John Smith GL 10.200.6010 $500

John Smith DOD Project $2,000

Mary Marshall GL 10.300.6010 $1,440

Mary Marshall NSF Project $2,160

4. The Create Accounting for Projects process will generate the appropriate journal entries based on the subledger accounting
rules.
Table 5
Non-Project Journal Entries Amount Debit/Credit
GL 10.200.6010 $500 Debit
GL 10.300.6010 $1,440 Debit
Payroll Clearing $1,940 Credit

Table 6
Project Journal Entries Amount Debit/Credit
GL 20.000.6000 * $4,160 Debit
Payroll Clearing $4,160 Credit
* This is assumed to be the account assigned to the debit for all project related labor costs in the accounting rules. Total of
DOD Project $2,000 and NSF Project of $2,160 that results in $4,160.

5. The table below illustrates the consolidated view of the general ledger entries after the labor distribution and accounting
processes are complete. The payroll clearing has a zero balance and appropriate general ledger accounts show debit balances
for labor expenditures. The payroll clearing will NOT net to zero if any of the project costs errored in the Import Payroll
Costs process in projects.
Table 7

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 Account Example Step Debit Credit
00.000.1500, Payroll Clearing 1. $6,100
4. $1,940
4. $4,160
00.000.2100, Payroll Liability 1. $6,100
10.200.6010, General 4. $500
Fund.Engineering.Salary
10.300.6010, General 4. $1,440
Fund.Cardiology.Salary
20.000.0600, Restricted 4. $4,160
Fund.General.Salary

SECURITY ADMINISTRATION SPECIFIC TO LABOR DISTRIBUTION

These are the steps specific to Labor Distribution to ensure basic functionality. The steps are described in this section for efficiency.
These setups can be extended to meet unique requirements and some examples are provided to illustrate enhanced operation.

Roles
There are two new roles:
1. Labor Distribution Administrator
a. Labor Distribution work area access to create and maintain labor schedules via the Find Person and Create and
Maintain Labor Schedules pages.
2. Labor Distribution Accountant

a. Labor Distribution work area access to manage and reprocess labor costs via the Manage Labor Costs page.
b. Processes that can be run by this role are:
i. Load Interface File for Import

ii. Import Payroll Costs

If both roles are assigned to the same user, the Labor Distributions work area will default to the Find Person page and have a button
on the Create and Maintain page for the user to be able to switch to the Manage Labor Costs page and back.

Preparing the Roles for Use

Before the roles can be effectively used, data security must be applied.
1. Labor Distribution Accountant

a. Uses the Manage Data Access object to secure the data

b. After assigning the role to a user, navigate to Setup and Maintenance -> Manage Data Access for Users and assign a
security context for the user and role.
i. Example

1.
c. To see person names in OTBI, you should assign a Person Security Profile to this role for Public Persons

i. Navigate to Assign Security Profiles to Role setup task

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 ii. Search for Role of Labor Distribution Accountant
iii. Click the Edit option

iv. In the Public Person option chose View All People to allow user to see Person Names in OTBI when
looking at Labor Costs

2. Labor Distribution Administrator

a. Uses the Human Capital Management (HCM) security framework to allow for segregation of persons across an
enterprise

i. To learn more, see "Securing HCM" documentation, specifically Securing Person Records by Area of
Responsibility

b. Setup the Role for Person Security

i. Create a Responsibility Type
1. FSM Task = Manage Assignment Responsibility Lookups

2. Lookup Type = PER_RESPONSIBILITY_TYPES

3. Example

a.
ii. Create a Person Security Profile
1. FSM Task = Manage Person Security Profile
2. Click the plus icon to Create

3. Example

a.
iii. Assign Security Profiles to Role
1. FSM Task = Assign Security Profiles to Role

2. Search for the role Labor Distribution Administrator (or custom role you created)
3. Click Edit
4. Navigate to Security Criteria and:

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 a. For Person security criteria choose the Person Security Profile created in the prior
step

b. For Public Person choose a value to secure publicly available person data
i. Suggested View All People to be able to see the person name when needed
(for example, in OTBI)
5. Navigate through the train stops till you get to Submit
6. Example

a.
7. The role is now secured for Person data leveraging the Area of Responsibility assigned to the
person / user dynamically when the user navigates to the Labor Distribution work area to
create and maintain labor schedules.
iv. To assign the area of responsibility to the person (this is in the User Setup section below as well, but here
for the entire flow):

1. Navigate to Person Management work area

2. Find Person

3. Open panel drawer and select Areas of Responsibility

4. Click the plus icon to Create

5. Name the responsibility being created for this person

6. Choose the Responsibility Type: Lookup Code created above
7. Example:

a. This Person has both a Business Unit and a Hierarchy Type assigned. The Person
Security Profile -> Area of Responsibility defined above and assigned to the Role
defines what Scope of Responsibility value to use. The person could have many roles
with different Person Security Profiles with different Area of Responsibility being
applied.

b.

User Setup

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These are the standard user setup steps to ensure the Labor Distribution Accountant and Labor Distribution Administrator roles
provide access to data. The user setup steps should be done after the Roles are configured as defined above.

1. User Creation
a. No changes to user creation

b. Users need the or similar abstract role of Employee to enable proper access to the person data
2. Assigning Role to Users
a. Labor Distribution Accountant

i. Uses the Manage Data Access object to secure the data

ii. After assigning the role to a user, navigate to Setup and Maintenance -> Manage Data Access for Users
and assign a security context for the user and role.
1. Example

a.
b. Labor Distribution Administrator

i. Uses the Person Security Profile settings to manage data access. All steps above for the role and Person
Security need to be completed to take effect, but the User / Person steps below can be done at any time

1. Navigate to Person Management work area

2. Find Person

3. Open panel drawer and select Areas of Responsibility

4. Click the plus icon to Create
5. Name the responsibility being created for this person

6. Choose the Responsibility Type: Lookup Code created above

7. Example:

a. This Person has both a Business Unit and a Hierarchy Type assigned. The Person
Security Profile -> Area of Responsibility defined above and assigned to the Role
defines what Scope of Responsibility value to use. The person could have many roles
with different Person Security Profiles with different Area of Responsibility being
applied.

b.

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PAYROLL ELEMENT SETUP INSTRUCTIONS FOR NON-ORACLE PAYROLL
CUSTOMERS
Non-Oracle Cloud Payroll customers will not have setup Payroll Elements. In order to use them in Labor Distribution, they will need
to be setup for any payroll element that is planned to be imported into Labor Distribution. The steps below are simple setup
instructions. For more information please reference the “Set Up Elements” section of the book “Oracle Global Human Resources
Cloud Implementing Payroll for Global”.

Overview
A pay element is a type of pay a person and assignment can receive. For example, “Bonus” is a common pay element that may or may
not be on a person and assignment combination of pay. The Labor Distribution’s initial release captures the pay element on the
payroll costs imported. In future enhancements, labor schedules will be able to be defined for pay elements. In order to ensure
accuracy, the Labor Distribution solution is leveraging the payroll element object which requires setup to ensure they exist in the
system.

Create and Maintain Elements

For customers that are using Oracle HCM Payroll, the element objects will already be configured. For customers that are not using
Oracle HCM Payroll, the steps below provide the most efficient practice for creating elements.
1. Go to Fusion Setup and Maintenance task ‘Elements’

2. Click the ‘Create’ option

3. Choose standard values for pay elements, see example below

4. Click Continue

5. Accept all the defaults available on the following pages

6. Submit the element to be created
7. After the submit process completes, query for the new Element Name

8. Additional elements may be created based on your Country settings.

a. The image below illustrates that three additional elements are created based on the Legislative Data Group of
Vision City LDG.
b. This example setup the element “LD-Test” and that is the pay element that will be on the payroll import records.
The additional three elements that are auto-generated are not used.

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Loading Elements from Third Party Application
You can load Elements from a separate payroll system by using the HCM data loader solution. For information on how to load
Elements see “Integrating with HCM” at docs.oracle.com. Elements are in the “Loading Payroll Setup Objects” section.

FILE BASED DATA INTERFACE (FBDI) FOR LABOR DISTRIBUTION

Import Payroll FBDI

The Labor Distribution Accountant will interface the payroll file and run the import payroll costs process to distribute the costs based
on the labor schedules.
For information on the interface process, see the Import Payroll Costs section of the File Based Data Import for Oracle Project
Portfolio Management Cloud guide.

Assignment Labor Schedules FBDI

The role of Project Application Administrator has the authority to load labor schedules through this interface process. The Labor
Distribution Administrator is not expected to be loading masses of labor schedules.
The Assignment Labor Schedules FBDI process flattens the three levels of the labor schedule to increase the efficiency of automation.
Flattening the Header, Version, and Distributions into one row and duplicating the Header and Version attributes allows for more
effective automation from third party solutions.
This Interface allows for creation of new Header, Version, and Distribution combinations, as well as creation of new Versions within
an existing Header.
For information on the interface process, see the Import Assignment Labor Schedules section of the File Based Data Import for Oracle
Project Portfolio Management Cloud guide.

ASSUMPTIONS / PRE-REQUISITES
The objects below are assumed to be setup prior to the use of Labor Distribution capabilities:
1. Human Capital Management (HCM)
a. Elements

b. Assignments
c. Persons with assignments

d. Organizations
i. Business Units
ii. Departments

iii. Trees
2. Project Financials

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 a. Projects / Tasks / Awards
b. Organizations

c. Expenditure Types
i. Labor Schedule Distribution Rules leverage expenditure types in the Category of Labor and Expenditure
Type Class of Straight Time.

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FREQUENTLY ASKED QUESTIONS
This is a list of questions that are asked and their associated answer.

Does Labor Distribution replace Timecards?

No. Timecards used in the Projects and Time and Labor integration is a separate business flow. Labor Distribution can be used
instead of timecards if the project requirements allow for a percentage of salary to be used instead of actual time entered.

Non-Project Labor Costs not being picked up in Create Accounting?

From the Implementation Guide “Oracle Financials Cloud Implementing Subledger Accounting” follow the steps below:
1. Manage Subledger Accounting Options
a. This task is accessed from the Setup and Maintenance work area. The page is displayed in the context of a primary
or secondary ledger. All registered subledger applications are displayed. If you created additional accounting event
classes after initial ledger setup, run the Update Subledger Application Options process to incorporate these event
classes.

Labor Distribution Labor Costs not displaying in Manage Unprocessed Costs?

Labor Distribution generated labor costs that error in the distribution process do not display in Manage Unprocessed Costs, because
the entire originating payroll cost needs to be managed as a whole. A distributed portion to a project cannot be managed in Manage
Unprocessed Costs. Users should use the Manage Labor Costs page to view and manage these costs.

User with Labor Distribution Administrator role is not seeing the right list of people based
on the security setup?
If the user was logged in and was already viewing people in the Find Person page, please have the user clear the cache in the browser
and refresh the page. If that does not resolve this problem, a security administrator should be sure to run the scheduled processes
below to make sure the users and roles have been updated effectively.
1. Send Pending LDAP Requests

2. Retrieve Latest LDAP Changes

3. Import User and Role Application Security Data

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Distribute Labor Amounts Using Labor Schedules

April 2020
Author: Mike Bartoletti
Contributing Authors: Ajay Aggarwal, Satya Anur, Rebeca Farias, Dustin Grabowski, Barry Hickson, John Kostecki, and Yan Wu