Cost centre allocation is a critical component of financial reporting and budgetary control. It enables organizations to accurately track expenses across various departments, projects, and business units.
If the payroll system fails to correctly output cost centre information on the general ledger, it may be due to one of the following reasons.
We’ve compiled a list of possible reasons and how to resolve them. Follow the steps below based on the identified cause.
Deduction pay code
To ensure the employee's cost centre appears correctly in the GL file description, follow these steps:
Turn on the Post to EE Cost Centre indicator at the pay code level.
Check that the GL Posting Override indicator is turned off.
Check that the Timesheet Override is turned off on the pay code screen.
Check no cost centre is set at the pay code level for this deduction pay code.
To adjust the pay code, follow the steps below in portal.
Click Settings then under Codes, click Pay Codes.
In the Search field, search for the relevant pay code.
Click the three-dot icon, then click Edit.
Click General Ledger.
Turn on Post to EE Cost Centre toggle.
Click SAVE.
No centre
If NO CENTRE appears in the cost centre column in the employee's pay history and in the GL file, it indicates that no applicable centre is set.
You can add a cost centre in three ways:
Pay code level
To set a cost centre at the pay code level, follow these steps:
Click Settings then under Codes, click Pay Codes.
In the Search field, search for the relevant pay code.
Click the three-dot icon, then click Edit.
Click General Ledger then turn on GL Posting Overrid toggle.
In the Cost Centre field, enter the cost centre.
Click SAVE.
Allowance or deduction level
To set a cost centre, follow the steps below.
Click Settings then under Codes, click Pay Codes.
In the Search field, search for the relevant pay code.
Click the three-dot icon, then click Edit.
Click Rules then click ADD.
From the Rule drop-down menu, select Timesheet Override.
Turn on toggle then click OK.
Click NEXT then click SAVE.
Check the allowance or deduction has a cost centre set at this level.
Employee level
To set a cost centre at the employee level, confirm that the employee has a cost centre set up in HR admin.
Cost centre not selected
If you typed in the cost centre but did not select it. To select the correct one, follow the steps below.
Click Settings then under Codes, click Pay Codes.
In the Search field, search for the relevant pay code.
Click the three-dot icon, then click Edit.
Click General Ledger.
🤓Tip: Always select the applicable cost centre from the drop-down list. Typing in the cost centre without selecting it won't take effect.
From the Cost Centre drop-down menu, select the relevant cost centre.
Click SAVE.
📌Note: If you make changes after the complete update job runs, a background update is required to reflect those changes.
Please raise a new case online and reference the title of this article. Include the following details:
Employee number
Cost centre
Payroll period