HR Cost Objects and Cost Distribution Information
Endusers who are authorized to carry out Personnel Administration Actions need understandingof cost objects and cost distribution functionality in IRIS. The cost object processed against
earnings or deductions is based upon hierarchy logic. The following points help to explain the
hierarchy:
· Each employee is linked to an organizational unit via a position. This relationship can be
found on Organizational Assignment (Infotype 0001).
· Each Organization unit is linked to what is called a home (or default) Cost Center (this is
a 1:1 link). This Cost Center displays on the employee record on Infotype 0001.
· Positions are linked to cost distribution through Cost Distribution (Infotype 1018).
This allows for multiple cost objects with percentage break downs. (System users will
find 1018 similar to the HRS 063 screen.)
· All positions should have an Infotype 1018 record.
· Employees can be linked to a cost distribution through Cost Distribution (Infotype
0027). Again, this allows for multiple cost objects with percentage breakdowns. (System
users will find 0027 similar to the HRS 036 screen.)
· An 0027 record is not required for all employees.
· Additional payments are entered through Recurring Payments (Infotype 0014) and
Additional Payments (Infotype 0015). Payments entered on these infotypes can be
directly linked to a single cost object, if desired (not required).
Illustrations of Cost Distribution and Payroll Processing
EE #10111111– John Doe· John is linked to a position 50999999; therefore he is related to Dept ABC. Dept ABC is
linked to Cost Center 1099999999.
If payroll processed at this point, with only the link to Dept ABC, all cost would be
charged to CC 1099999999. This is not a likely scenario.
· Position 50999999 has an IT 1018 with 70% going to Cost Center 1088888888 and 30%
going to Cost Center 1077777777.
If payroll processed at this point, the 1018 would override the home cost center, and cost
would be charged 70% to CC 1088888888 and 30% to CC 1077777777. This is the most
probable scenario.
· John Doe, EE #10111111, has an IT 0027 with 60% going to Cost Center 1055555555 and
40% going to Cost Center 1044444444.
If payroll processed at this point, the 0027 would override the 1018 cost centers, and cost
would be charged 60% to CC 1055555555 and 40% to CC 1044444444.
· John Doe has an Additional Payment of $1,000. This payment is charged to Cost Center
1022222222. IT 0027 still exists.
If payroll processed at this point, the $1,000 payment would be charged to Cost Center
1022222222. All other costs would follow what is on 0027 which would be 60% to CC
1055555555 and 40% to CC 1044444444.
Note that the progression of overrides will hold true with any combination of the above.