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Distributed Costing Over Negative Values Creates Incorrect Results (Doc ID 2727276.1)

Last updated on NOVEMBER 09, 2020

Applies to:

Oracle Payroll - Version 12.2 HRMS RUP12 and later
Information in this document applies to any platform.


On : 12.2 HRMS RUP12 version, Costing Setup and Processes

Distribution Costing distributes the Run Result value based on the ratio of individual element run result value to the sum of all the results. If the
Distribution Set has Earnings and Deductions both or Earnings alone with some negative values, then the resultant Distributed values will be higher
than the Run Result value being distributed. The Distributed values get inflated manifold when the total sum of the element result values is less than 1.

Below is the example.

For example, imagine, we have 4 Elements Earnings1, Earnings2, Deductions1 and Deductions2 configured in Distribution Set.

Another Element, Earnings3 needs to be Costed based on above Distribution Set.

Assume the Run Result values of elements are as below.

Earnings1 100.00
Earnings2 50.00

Deductions1 99.70
Deductions2 49.80

Earnings3 5.00

The overall sum of 4 elements in Distribution Set is
(100.00 + 50.00) - (99.70 + 49.80) = 0.50

Now the Distributed Costed values for Earnings3 is calculated as below.

For Earnings1, it is 5.00 * (100.00 / 0.50) = 1000.00 (of type Debit)
For Earnings2, it is 5.00 * (50.00 / 0.50) = 500.00 (of type Debit)

For Deductions1 , it is 5.00 * (99.70 / 0.50) = 997.00 (of type Credit)
For Deductions2 , it is 5.00 * (49.80 / 0.50) = 498.00 (of type Credit)

So, if you observe the Distributed values are higher than the actual Earnings of 5.00, but the net impact they will have will be equal to 5
since they are of Debit and Credit types respectively.

The observed behavior is because of the way Distribution Set is configured and probable when the overall sum (or net value) of Elements come to a value less than 1.

Similar results will be observed with Earnings alone if some of the Earnings Result values are negative.

Logging this Bug to review this scenario and see if we can distribute the Run Result values differently when the overall sum becomes less than 1.

Costing results and Payroll Run results should match.

The issue can be reproduced at will with the following steps:
1. Run Costing
2. Results does not match with the payroll run results.


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